Lippo's Gentle Care in deal to buy S$15m of Gateway's S$60m convertible notes

LIPPO-LINKED Gentle Care has made an official cash offer to acquire all of Gateway Partners' S$60 million convertible notes at S$0.042 per share, in line with its intent as stated in previous announcements.

Gentle Care has also entered into a sale and purchase agreement to buy S$15 million of the S$60 million notes, the company said in Singapore Exchange filings on Sunday night.

This development followed the approval of two resolutions - of the convertible notes being issued to Gateway and the acquisition of Healthway Medical Enterprises - at Healthway Medical Corporation's extraordinary general meeting on Friday.

In a statement released on Sunday night after the SGX announcement, Gateway said it has declined the offer by Gentle Care to acquire all of its S$60 million convertible notes, "as it is our intention (as we reiterated on Friday at the company EGM) to remain a long-term partner and work hard to ensure Healthway realises its potential".

It subsequently agreed to sell S$15 million in face value of the convertible notes to Gentle Care.

Gateway said: "Both Gentle Care and Gateway Partners will be large shareholders in the company going forward. Healthway's business currently is going through difficult times.

"We need to focus the management on the turnaround of the business and we want to make sure that all stakeholders are aligned towards this objective.

"This will help provide certainty to patients, doctors, employees, and suppliers and will stabilise the company overall.

"We look forward to contributing to the growth of the company for the benefit of all shareholders."