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Hot stock: IHC makes it to actives list after resuming trading
SHARES of International Healthway Corporation (IHC) jumped onto the list of actives on Tuesday afternoon, an hour after the company requested for trading to resume.
The counter rose 0.2 cent to S$0.106, with over 56.8 million units changing hands at 2.26 pm.
In a boost to investors' confidence, developer OUE - which has launched a mandatory unconditional cash offer for all the IHC shares that it does not already own, at 10.6 cents apiece - said in a comfort letter to IHC shareholders that it intends to review IHC's business and financial situation.
The letter, dated Feb 17 - the day after OUE launched its takeover offer for IHC - said that the developer would engage with IHC's creditors and stakeholders "with a view to understanding, addressing and, if necessary, restructuring the financing of the group".
In particular, OUE has set out in the letter that its long-term intention, subject to the foregoing review, is to work towards stabilising the nursing home owner's business and financial position, with the understanding that IHC is expected to operate as a going concern in view of its listing status on Catalist.
The takeover offer was triggered after OUE inked a deal on Feb 16 to buy a further 35.77 per cent of IHC, which would bring its stake up to 57.6 per cent.