KUALA LUMPUR (Nov 7): Apex Healthcare Bhd (KL:AHEALTH) has received a takeover offer at RM2.64 per share from its major shareholder backed by a Singapore private equity firm.
Dr Kee Kirk Chin, Apex Healthcare’s current chief executive officer, is partnering Quadria Capital Investment Management Pte Ltd in a consortium to acquire the 708.51 million shares or 98.24% not owned by them to take the pharmaceutical group private, according to a press notice on Friday.
The price tag represents a premium of 0.76% to Apex Healthcare's closing price on Friday of RM2.62. On a volume-weighted basis, the takeover offer is a premium of 6.58% to its average price of RM2.2582 in the past one month and 12.83% to its six-month price of RM2.3398.
Apex Pharmacy Holdings Sdn Bhd, Kee’s private vehicle and the single-largest shareholder with a 39.58% stake in Apex Healthcare, has already pledged to accept the offer. Other connected shareholders, including his brother Kee Kirk Chuen and Tan Su-Ann, have also committed to accept the offer.
Buying out the remaining 407.3 million shares or 56.47% stake will cost the consortium RM1.08 billion.
Apex Healthcare mainly manufactures off-patent generic pharmaceuticals and medical devices. It is also a contract manufacturer for major pharmaceutical companies.
The consortium said it does not intend to maintain Apex Healthcare’s listing status on Bursa Malaysia and the offer will turn compulsory once it secures 90% of the shares.
Coupled with an undertaking from Australian investment firm WHSP Holdings Pty Ltd that holds a 29.5% stake, the consortium has secured commitments from shareholders collectively owning more than 73% of the company.
Apex Healthcare was established in 1962 by Kee’s father Kee Tah Peng @ Hee Teck Peng.
In June this year, the patriarch and his wife Yang Liew Fang ceased to be substantial shareholders of Apex Healthcare after they transferred shareholdings in their family vehicles to their sons.
Earlier in July, The Edge Malaysia reported the Kee family was looking to exit the group and was in talks with a few parties to find a suitable buyer.
Shares of Apex Healthcare rose four sen or 1.55% to RM2.62, valuing the group at RM1.89 billion, before trading was suspended on Friday afternoon for the announcement.