Thomson Medical Group has sold a hospitality unit to the private vehicle of property tycoon Gordon Tang for $3.38 million in cash as part of its divestment strategy to focus on its healthcare business, according to a filing with the Singapore Exchange yesterday.
Thomson Medical, which operates a chain of women's and children's specialist clinics, said it completed the sale of Ariva to Tang Dynasty, which is majority owned by Mr Tang. Mr Tang is also the controlling shareholder of listed developer SingHaiyi Group.
Ariva was acquired in 2016 from a group of vendors, who had also made certain loans to Thomson Medical's wholly owned subsidiary Rowsley Hospitality Holdings. As part of the sale to Tang Dynasty, those vendors have agreed to terminate all obligations that Rowsley Hospitality had to pay earn-out considerations and to repay the loans, against payment of a compromised amount.
The net asset value of Ariva was $5.26 million as of June 30.
Thomson Medical said its current focus is to develop its healthcare business, and it will assess options to divest its real estate portfolio when the opportunities arise. It said: "Ariva provides hospitality services in Asia. The company has reviewed its business and decided to streamline its real estate business in Asia to focus on being a pure-play consultancy business. The disposal is made pursuant to such decision."
Thomson Medical does not expect the deal to have any material impact on net tangible assets and earnings per share for the year ending Dec 31, 2018.
Ariva provides hospitality services in Asia. The company has reviewed its business and decided to streamline its real estate business in Asia to focus on being a pure-play consultancy business.
THOMSON MEDICAL, on the sale of hospitality unit Ariva to Tang Dynasty.