SINGAPORE - RHT Health Trust has completed the disposal of its entire portfolio of healthcare assets to its controlling unitholder Fortis Healthcare for about $895.55 million.
RHT's trustee manager intends to distribute a "substantial amount" - or no less than 95 per cent of the net proceeds (after deducting relevant liabilities) - as a special distribution to unitholders. The remaining amounts will be retained to cover RHT's ongoing expenses.
The trust's assets included its interests in 12 clinical establishments, four greenfield clinical establishments, and two operating hospitals in India. As RHT has ceased to have any operating business and its assets consist wholly or substantially of cash, it is now deemed to be a cash trust. On Aug 3, 2018, the Singapore Exchange had granted conditional approval for the continued trading of its units, but this was subject to certain conditions.
RHT added: "The trustee manager is considering various options available for RHT, including identifying any possible new business for RHT which is able to satisfy the (Singapore Exchange's) requirements for a new listing, or the winding up of RHT and distribution of any remaining cash after deducting any expenses incurred therefrom to the unitholders."
It highlighted that the SGX will remove RHT from the official list if RHT is unable to meet the requirements for a new listing within 12 months from the time it becomes a cash trust. The trustee manager may apply for a maximum six-month extension to the one-year period, assuming it has signed a definitive agreement to acquire a new business, which must be completed within that six months. If RHT is unable to meet key milestones in the transaction or complete the acquisition on time, RHT will be required to delist and make a cash exit offer to its unitholders within six months.
Meanwhile, with the completion of the disposal, RHT plans to redeem $120 million of 4.5 per cent notes due Jan 22, 2019 at 100.45 per cent. It will no longer seek the approval of these noteholders to extend the maturity date of the notes by six months.
The meeting of noteholders will continue to be convened on Jan 21, nonetheless, but bondholders who had earlier given their consent will not receive the 1 per cent consent fee.