Rowsley shares up 75% on planned acquisition of Thomson Medical

A view of a signage of Thomson Medical Centre in Singapore July 19, 2017.
A view of a signage of Thomson Medical Centre in Singapore July 19, 2017.PHOTO: REUTERS

SINGAPORE - Rowsley shares jumped 75.34 per cent to 12.8 Singapore cents in late afternoon after it said overnight that its controlling shareholder and billionaire Peter Lim plans to inject his 100 per cent stake in Thomson Medical and 70.36 per cent stake in Bursa-listed TMC Life Sciences into the company.

The two stakes together have been valued at up to S$1.9 billion on a willing-buyer willing-seller basis.

No details were given about how Thomson Medical and TMC were valued and the price will be finalised after due diligence has been conducted.

Rowsley will fund the purchase by issuing Mr Lim new shares at 7.5 Singapore cents each.

If the deal proceeds as planned, Rowsley has also proposed to give shareholders two bonus warrants for every one share they own, with an exercise price of nine Singapore cents.

For each bonus warrant exercised, shareholders will also get one more piggyback warrant that can be exercised at 12 Singapore cents.

Rowsley said it will be appointing a financial adviser as well as an independent financial adviser in relation to the acquisition.

On July 14, before a trading halt was called, Rowsley shares had already started to stir, jumping 10.61 per cent in one day on volume of 64.3 million.

Over the years, Rowsley has funded acquisitions in various businesses through share issuances.

It completed the acquisition of Ariva Hospitality in February. Last December, it completed the acquisition of a 50 per cent stake in Stock Exchange Hotel, a building in Manchester that it is converting into a 39-room boutique hotel.

In August last year, it completed the acquisition of engineering firm Squire Mech.

Rowsley made a net loss in the quarter to March 31 due to staff costs jumping 19 per cent and growing faster than its topline, which grew 10 per cent from a year ago.