SINGAPORE (THE BUSINESS TIMES) - Catalist-listed Singapore O&G Group has received a voluntary unconditional cash offer at 29.5 cents per share from special purpose vehicle NewMedCo Group to take the company private, it said in a bourse filing on Monday (March 7).
Singapore O&G, which has four operating segments of obstetrics and gynaecology (O&G), paediatrics, cancer-related general surgery and dermatology, provides healthcare services in Singapore and Malaysia.
Meanwhile, the offeror NewMedCo is a consortium consisting of the offer's sponsor and promoters.
The offer sponsor, Hanaan Health Group, is majority held by a special purpose vehicle that is in turn wholly owned by Dymon Asia Private Equity (SE Asia) II. According to the filing, its business is to invest in or acquire corporations in the healthcare sector.
Meanwhile, the promoters are Singapore O&G's executive chairman Beh Suan Tiong, its executive director Heng Tung Lan and three specialist medical practitioners employed by the group: Dr Lee Keen Whye, Dr Joyce Lim Teng Ee and Dr Choo Wan Ling. In total, they own around 71.4 per cent of the issued shares in Singapore O&G.
NewMedCo said it intends to make Singapore O&G its wholly owned subsidiary and does not intend to preserve its listing status.
It expects privatisation will give it and the management of the company more flexibility in managing its business, and optimise the use of its management and capital resources and facilitate the implementation of any operational change.
Noting that the trading volume of Singapore O&G's shares have been generally low, the offeror said this presents shareholders a "clean cash exit opportunity to realise their entire investment in the shares at a premium over the prevailing trading prices of the shares without incurring brokerage and other trading costs".
The offer price represents a premium of around 15.7 per cent over the last transacted price of 25.5 cents on March 3, being the last full market day of which the shares were transacted prior to the offer announcement.
Furthermore, NewMedCo said it expects Singapore O&G will unlikely require access to Singapore equity capital markets to finance its operations in the foreseeable future as it may tap on other funding sources such as bank borrowings.
A delisting will also enable the company to save on expenses relating to the maintenance of a listed status and focus its resources on its business operations, the offeror said.
NewMedCo added that subject to normal business conditions, it does not intend to make major changes to the business of the company or its management team, re-deploy its fixed assets or discontinue the employment of its employees.
Shares of Singapore O&G were trading flat at 25 cents at 1.52 pm on Monday.