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Asian Healthcare Specialists partners Heliconia to pursue healthcare investments in South-east Asia
ASIAN Healthcare Specialists (AHS) said on Wednesday that it is partnering Temasek Holdings' Heliconia unit to pursue healthcare investments in South-east Asia.
The two have formed a co-investment vehicle, Fansipan 2, for this purpose, with Heliconia taking a majority stake. Heliconia, through its Encyclia 1 Investments unit, will take a 76.2 per cent in Fansipan 2 for S$25.6 million.
Meanwhile, AHS, through subsidiary Salvia Ventures, will subscribe for a 23.8 per cent stake for S$8 million.
The total sum of S$33.6 million will serve as the first tranche of funding for any healthcare or healthcare-related investments in South-East Asia - as identified by Heliconia, after consulting with AHS.
AHS said it will fund its investment in Fansipan 2 with a combination of proceeds from convertible bonds it intends to issue to Heliconia, the remainder of the net proceeds raised from its initial public offering of S$2.1 million and internal resources.
The group is proposing to issue a S$3 million convertible bond to Encyclia and a S$1 million convertible bond to Vanda 1 Investments (another Heliconia unit), both with zero coupon.
The bonds will be converted into shares in AHS if Fansipan 2 undertakes a healthcare or healthcare-related investment of more than S$10 million, at S$0.1602 per conversion share.
If fully converted, the shares represent about 5.48 per cent of the enlarged issued share capital of the company, essentially turning Heliconia into a substantial shareholder in AHS.
AHS said: "The group views the Fansipan 2 investment as an opportunity to foray into an overseas market as a minority investor with a strong majority investment partner in Heliconia. The group’s participation in a co-investment vehicle with Heliconia...will enable it to gain valuable knowledge and insight for future investment opportunities."
In addition, if the bonds are converted and Heliconia becomes a substantial shareholder, it may lead to "increased visibility and profile of the company in the capital markets".