Japan s Nissha to exit investment in Vietnam s USM Healthcare
Nissha Co Ltd on September 4 announced that the company resolved to transfer all shares of USM Healthcare Medical Devices Factory JSC held by the company and its consolidated subsidiary Nissha Vietnam Co Ltd
Japan's Nissha Group has decided to exit its investment in Vietnam's USM Healthcare following a review of the acquisition's impact on the company's future value. The acquisition, which saw Nissha gain a 60 percent stake in USM, was intended to bolster the efficiency of USM's existing business and expand Nissha's CDMO (Contract Development and Manufacturing Organization) services in Southeast Asia.
However, during the post-merger integration and consolidation, it was discovered that inappropriate accounting treatments involving circular transactions had taken place at USM before the acquisition. Nissha has initiated an investigation, including external experts, to ascertain the relevant facts. Given the findings, Nissha is transferring its majority stake in USM and anticipates recording a gain or loss on the sale of shares in both non-consolidated and consolidated financial results for the fiscal year ending December 31, 2026.
USM, a Ho Chi Minh City-based manufacturer, specializes in medical devices such as stents for cardiology and orthopaedic devices.
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