Hot stocks: OUE Healthcare, Healthway Medical jump after proposed privatisation

SHARES of OUE Healthcare (OUEH) and Healthway Medical Corporation rose on heavy trading after OUEH proposed a voluntary conditional offer to delist Healthway Medical.

OUEH shares rose as much as 15.4 per cent or S$0.004 to S$0.030 right when the market opened on Monday (Jul 3), reaching a 1.5-month high. The last time its share price closed near this level was on May 17, 2023.

Meanwhile, Healthway Medical shares climbed up as much as 42.4 per cent or S$0.014 to S$0.047 at market open, hitting a three-year high. The last time its shares closed near this level was Mar 18, 2020.

By 1.33 pm, OUEH was up 11.5 per cent or S$0.003 to S$0.029, with some 4.5 million shares changing hands. Healthway Medical was trading 39.4 per cent or S$0.013 higher at S$0.046, with 18.8 million shares changing hands – making it the seventh most traded counter by volume. 

No married deals were recorded at the time, based on ShareInvestor data.

OUEH shares eventually closed at S$0.029 on Monday, up 11.5 per cent or S$0.003, while Healthway Medical ended at S$0.046, an increase of 39.4 per cent or S$0.013.

On Monday morning, OUEH said that it will spend up to S$66.1 million to delist Healthway Medical at S$0.048 per share. 

This comes as OUEH looks to streamline its operations, with the enlarged OUEH group serving as a regional platform for growth, both companies said on Monday (Jul 3).

OUEH and its concert parties hold around 42.28 per cent of Healthway Medical’s total shares as at Monday. The maximum number of offer shares it can acquire is around 1.4 billion, which is about 30.4 per cent of the total number of issued shares.

Gateway Active, which owns around 27.36 per cent of Healthway Medical’s shares, has made an irrevocable undertaking to not accept the exit offer but vote in favour of the delisting.

The exit offer is conditional on Healthway Medical receiving shareholders’ approval for the delisting and to amend the company’s constitution. Shareholders will vote at an extraordinary general meeting to be convened.

The exit offer price represents a premium of about 45.5 per cent over Healthway Medical’s last-traded price of S$0.033 on Jun 28 – the last full trading day before the offer announcement.

It also implies a 45.5 per cent premium over its one-month and three-month volume-weighted average prices (VWAP), a 41.2 per cent premium over its six-month VWAP and a 37.1 per cent premium over its 12-month VWAP.

Healthway Medical, a private healthcare provider, has more than 100 clinics in its network, including general practitioners and family medicine clinics, offering health screening, specialist, dental and allied healthcare services.

OUEH said that the offer will enable the group to “harness potential synergies” with Healthway Medical to deliver comprehensive healthcare services across preventive, interventive, diagnostics, treatment, aftercare and other ancillary healthcare services.

Its offer was made through its wholly-owned subsidiary OUEH Investments – a special purpose vehicle incorporated for the purposes of the exit offer.