Terms of implementation for IHC's acquisition of Healthway to be revised

SINGAPORE - International Healthway Corporation Ltd (IHC) and related company Healthway Medical Corp, both listed on the Catalist board, announced on Wednesday (Sept 16) that they have decided to revise the terms of an implementation agreement to do with IHC's acquisition of Healthway through a share swap.

The decision, the companies said follows a "trade with caution" advisory from the Singapore Exchange on Sept 9 on IHC's shares and the recent decline in the share price of Healthyway.

Details of the revised terms of the implementation agreement will be separately announced in due course, the companies added.

SGX in its review of trading in IHC shares had indicated that over 60 per cent of the trades since April were conducted by a handful of individuals "who seem to be connected to each other".

IHC said in June that it would purchase all the shares of Healthway at 10 cents apiece. It will, in turn, pay for this by alloting and issuing new IHC shares at 45 cents each.

Healthyway closed at a 52-week low of 3.8 cents on Tuesday before trading in its shares was suspended this morning. IHC last traded at 31.5 cents on Sept 9.

In June, Fan Kow Hin was a controlling shareholder of both Healthway and IHC, while Aathar Ah Kong Andrew was a controlling shareholder of IHC and a substantial shareholder of Healthway.

In a separate filing with SGX on Wednesday, IHC said that the buyer of two of its freehold properties in Melbourne, Australia, had given notice on Sept 9 that it wished to terminate the sales and purchase agreement.

IHC said it has decided to retain the properties in order to start a planned private Reit with a larger portfolio of assets.

The properties comprise a seven-storey office building with net leasable area of 10,710 square metres at 553 St Kilda Road and an eight-storey office building with net leasable area of 8,229 sqm at 541 St Kilda Road,

The company said it had been planning to form the Reit in Australia, which its other Melbourne property, Geelong Medical Centre, was already designated to be a part of.

IHC said forming the private Reit would allow the company to continue to grow its healthcare businesses in Australia and provide an alternative access to capital for expansion. It said it envisages turning the private trust into a listed public Reit once a suitable size is achieved.