Hong Kong-based billionaire Solina Chau has increased her stake in Vancouver-based Well Health Technologies Corp. after snapping up shares for a purchase price of $81 million CAD ($60 million USD).
According to an early warning report issued on behalf of “Chau Hoi Shuen Solina Holly” on Oct. 15, Chau acquired approximately 18.6 million common shares in Well Health at a price of $4.34 CAD per share. The deal gives Chau a 14.53 percent ownership stake in the company, representing roughly 36 million shares.
A Private Capital Journal report indicates the deal makes Chau the largest shareholder in Well Health.
The early warning report states that Chau indirectly owned seven percent of Well Health’s outstanding shares. According to a report from Private Capital Journal this deal makes Chau the largest Well Health shareholder. BetaKit has reached out to Well Health for confirmation, but did not hear back before press time.
While Well Health is a publicly traded company, this acquisition was made by way of a private share purchase agreement, which means that instead of buying shares on the open market, Chau directly purchased shares from a specific shareholder or group of shareholders in a private transaction.
Chau is the founder of deep tech venture capital firm Horizons Ventures, a business partner in the multinational conglomerate Cheung Kong Group, and a major shareholder in Tom.com, a Chinese publication and advertising company. Chau is also the director of the Li Ka Shing Foundation, which was founded in 1980 by fellow Hong Kong entrepreneur Li Ka Shing.
While Chau’s Western-style name is Solina Chau, per her Wikipedia page, the Chinese-style name is Chau Hoi Shuen.
Li, who led a $302.5-million equity offering for Well Health in February 2021, is also a potential candidate to have sold the shares to Chau. Chau and Li are longtime business partners, and Li has previously backed Chau’s firm Horizons Ventures. BetaKit has not confirmed the identity of the unnamed seller.
Founded in 2012, Well Health offers a software platform for healthcare providers that covers electronic medical records, practice management, billing, revenue cycle management, and data protection solutions.
RELATED: Well Health plans to spin out, publicly list SaaS and services business in 2025
The company, which trades on the Toronto Stock Exchange, has pursued an aggressive acquisition strategy in recent years, in addition to forming a close partnership with Toronto-based healthtech and AI firm Healwell AI.
In August, Well Health revealed plans to spin off and publicly list its SaaS division, Well Provider Solutions. On an earnings call, CEO Hamed Shahbazi noted that Well Health’s current valuation significantly undervalues the business compared to its individual segments and outlined a strategy to create “substantial shareholder value” by launching the division as an independent, publicly traded company in the first half of 2025.
According to Chau’s press release, she has no current plans to make any changes to her stake in Well Health, including buying or selling more shares, altering the board or management, or pursuing mergers or asset sales. There are also no plans to delist Well Health’s stock or make significant changes to its business structure, dividend policy, or bylaws.
In its Q2 earnings in August, Well Health reported record quarterly revenues of $243.1 million, an increase of 42 percent compared to Q2 2023. The company also reported adjusted earnings before interest, taxes, depreciation, and amortization of $30.9 million, an increase of 11 percent compared to Q2 2023.
Feature image courtesy of Well Health.