HEALTH Management International (HMI) has arranged a shareholder meeting on Oct 18 to vote on its management's joint bid with private equity investor EQT Mid Market Asia III GP BV (EQT GP) to privatise the healthcare company.

The potential deal is being done through a scheme of arrangement that values HMI at about S$611 million.

Under the scheme, each HMI shareholder will be entitled to receive for each HMI share either S$0.73 in cash, or one new ordinary share at the same price in PanAsia Health.

The offer price represents significant premiums to the volume-weighted average price (VWAP) over the past few months prior to the bid announcement in July. It is a premium of 29.7 per cent over the six-month VWAP, 27.4 per cent over the three-month VWAP and 24.8 per cent over the one-month VWAP.

HMI said its closing share price has exceeded the consideration offered by the scheme on only one trading day since the company's listing in 1999.

Its shares jumped as much as 9.1 per cent the next trading day after the privatisation bid was announced, ending the day at S$0.72.

HMI will not hold its annual general meeting and issue its annual report for fiscal 2019 ended June 30 if the deal is approved by shareholders and sanctioned by Singapore's High Court.

Its shares closed flat at S$0.725 on Wednesday.