Econ Healthcare’s investment policy to undergo review
This comes after the company booked a loss of $3.4m from its Crosstec exit.
Econ Healthcare’s audit committee (AC) will review and strengthen the private nursing home operator’s investment policy after booking a loss of $3.4m from the sale of all its shares in Hong Kong-listed Crosstec Group Holdings Limited.
In a bourse filing, the operator said its AC will also reevaluate related controls and safeguards to include more effective measures like the following:
- Due diligence undertaken prior to investing in listed equity securities should include consideration of the target company’s dividend policy, financial position, geographic location and industry (taking into consideration macroeconomic factors which may impact the geographical location and industry in question);
- Lowering the maximum investment limits, imposing sub-limits by asset class and imposing daily trading limits; and
- Imposing requirements regarding asset mix and portfolio diversification
External professional advisers will assist in the AC’s policy review.
Meanwhile, the Board of Directors will imminently be undertaking a review of the composition of the Investment Committee, including appointing a third member to the Investment Committee.
The operator earlier said that the move to sell its shares in Crosstec was made for the company to “focus its resources on growing its core business.”