Asian Healthcare Specialists inks investment agreement with Temasek unit

CATALIST-LISTED orthopaedic services provider Asian Healthcare Specialists (AHS) announced on Monday night that it has entered an investment agreement with Vanda 1 Investments, which is managed and controlled by Temasek Holdings unit Heliconia Capital Management.

AHS said that with Heliconia as a strategic investor, it "hopes to leverage Heliconia's value creation resources and strategic networks to facilitate the company's growth in the Asean region".

Said chief executive officer Chin Pak Lin: "With support from Heliconia and the group's strengthened financial position, the group is well-positioned to cater to the increasing demand for musculoskeletal care and services locally, and in time to come, regionally."

AHS is proposing to issue a zero-coupon convertible bond to Vanda 1 in the aggregate principal amount of S$5 million due in 2021, convertible in whole or in part into fully-paid ordinary shares in the capital of the company at a conversion price of 25 Singapore cents per conversion share, subject to adjustments in accordance to the agreement's provisions.

AHS is also proposing to grant a non-listed share option, to be exercised in whole or in part, carrying the right to subscribe for such number of ordinary shares in its capital for an aggregate consideration of S$5 million at the exercise price of 32.5 Singapore cents per option share, which is subject to the adjustment events.

The conversion price represents a premium of 0.2 per cent and the option price, a premium of 30.3 per cent over the volume-weighted average price of 24.95 Singapore cents for trades on the Singapore Exchange on Oct 12, the full market day immediately preceding the signing of the investment agreement.

As of the announcement date, Vanda 1 does not have any shareholding interests in AHS. The conversion and option shares, when issued, represent about 12.2 per cent of the existing issued and fully-paid up ordinary shares in AHS. They would represent approximately 10.9 per cent of the enlarged issued share capital of AHS after their issue and allotment, assuming that Vanda 1 fully converts the convertible bond and fully exercises the option.

The estimated net proceeds, after deducting estimated expenses, are approximately S$9.92 million. AHS intends to use all the net proceeds to finance business expansion and grow its existing business.

Through its sponsor RHT Capital, AHS will be applying to the Singapore Exchange for the listing and quotation of the conversion shares and the option shares on Catalist. AHS said it will make the necessary announcements once listing approval has been obtained.