Hot stock: Singapore O&G shares spike 20% on takeover news

SHARES of Catalist-listed healthcare provider Singapore O&G 1D8 jumped sharply higher, after its trading halt was lifted on Wednesday (Mar 9) morning.

As at 9 am, the counter leapt S$0.05 or 20 per cent to an intraday high of S$0.30 from its last price of S$0.25 before it called for a trading halt on Mar 4.

It later eased to close at S$0.295, up S$0.045 or 18 per cent with some 9.3 million securities changing hands.

No married deals took place throughout the day, according to ShareInvestor data.

The brisk trading of Singapore O&G's shares comes after the group on Mar 7 announced it received a voluntary unconditional cash offer at S$0.295 a share.

The offeror, NewMedCo Group, is a special purpose vehicle consisting of the offer's sponsor and promoters.

The offer sponsor, Hanaan Health Group, is majority-held by a special purpose vehicle that is in turn wholly-owned by Dymon Asia Private Equity (SE Asia) II.

Meanwhile, the promoters are Singapore O&G's executive chairman Beh Suan Tiong, its executive director Heng Tung Lan and 3 specialist medical practitioners employed by the group. In total, they own around 71.4 per cent of the issued shares in Singapore O&G.

NewMedCo said it intends to make Singapore O&G its wholly-owned subsidiary and does not intend to preserve its listing status.