Asian Healthcare Specialists finishes early bond redemption under deal with Heliconia unit

CATALIST-LISTED Asian Healthcare Specialists has redeemed the remaining portion of a convertible-bonds issuance to a unit of Temasek Holdings' Heliconia.

The 2018 investment agreement with Heliconia unit Vanda 1 Investments has thus ended, except for certain provisions meant to survive the termination, the board said.

Asian Healthcare Specialists redeemed on Tuesday S$4 million in the principal amount of the 2018 Vanda Convertible Bonds, which were originally set to mature on Oct 30, 2021. It had redeemed the first S$1 million last month.

The two parties had inked an early redemption and termination agreement for the bonds in July, which nixes Vanda 1's option to subscribe for Asian Healthcare Specialists shares at S$0.325 apiece.

Instead, Asian Healthcare Specialists would issue a S$3 million convertible bond to another Heliconia unit, Encyclia 1 Investments, and a S$1 million convertible bond to Vanda 1 Investments.

The agreement came as part of a partnership to jointly pursue healthcare investments in South-east Asia. The latest round of convertible bonds was to be converted into shares in Asian Healthcare Specialists at S$0.1602 apiece if the co-investment vehicle made a healthcare-related investment of more than S$10 million.

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This condition was fulfilled late last month when the co-investment vehicle, Fansipan 2, took a 99.9 per cent stake in two private hospitals in central Vietnam.

Asian Healthcare Specialists Shares closed up by half a Singapore cent, or 2.7 per cent, to S$0.19 on Tuesday, before the latest announcement.