SINGAPORE (Feb 7): Healthway Medical Corporation has received a takeover offer from a Lippo-linked entity known as Gentle Care.
Gentle Care, who controls a 13.3% stake in the target company, is offering 4.2 Singapore cents in cash each for all the shares of Healthway it does not own. Gentle Care is a wholly-owned subsidiary of Valiant Leader, and an indirect subsidiary of entities including Lippo China Resources (LCR), Lippo and Lippo Capital.
LCR is an investment holding company which is listed in Hong Kong. According to LCR’s website, its chairman is Stephen Riady, who also made an offer for F&B operator Auric Pacific this morning.
The offer price represents a premium of 5% over the last transacted price of 4 Singapore cents on the last trading day before the announcement. This values the company at S$103 million based on its 2.46 billion shares outstanding.
Healthway Medical Corp is one of Singapore's largest network of private medical centres and clinics offering healthcare services in primary healthcare, dental and specialist services.
In the offer document, Lippo and LCR say they would like to establish their presence healthcare industry in Singapore.
"The company, as a well-established private healthcare provider in Singapore, matches Lippo's and LCR's strategy to establish their presence in the healthcare industry in Singapore and to acquire quality healthcare management capability,” added Lippo and LCR.
In Jan Healthway Medical Corp announced a proposal to issue GW Active S$10 million in convertible notes and S$60 million in non-convertible notes. The company intends to use 20% of the S$68.3 million in net proceeds raised to repay existing bank borrowings.
The proposed issuance will require the approval of shareholders.