SINGAPORE - Over the weekend, private equity firm Gateway Partners agreed to sell S$15 million face value of convertible bonds to Lippo Group vehicle Gentle Care for S$18.6 million.

Gateway had previously disclosed that it intends to keep its desired level of holdings in Healthway to under 30 per cent of the company.

Lippo thus made the offer to purchase Gateway's holdings above its publicly disclosed level after an earlier offer on Friday for all the S$60 million convertible notes owned by Gateway was declined.

The S$15 million bonds are convertible into shares worth 13.86 per cent of the enlarged share capital of Healthway.

Gateway said in a statement: "Both Gentle Care and Gateway Partners will be large shareholders in the company going forward. Healthway's business currently is going through difficult times. We need to focus the management on the turn-around of the business and we want to make sure that all stakeholders are aligned towards this objective."

Gentle Care said in a statement: "As a significant shareholder of HMC, we understand that the welfare of the doctors, nurses and staff, in addition to operational stability, are of great importance. We are pleased that the company's immediate financial needs are being addressed and we remain committed to HMC."

Lippo is also in the midst of a voluntary general offer for Gateway, and had accumulated 29.42 per cent of all shares in circulation through open market purchases as of Monday.