Top execs of Singapore Medical Group bump up offer price to S$0.40 to take company private 

FOLLOWING an offer of S$0.37 per share in cash made in September to take Singapore Medical Group (SMG) private, an investment vehicle owned by the top executives of the company have now raised the offer price to S$0.40 per share or one new share in the offeror.

The new offer of represents an increase of approximately 8.1 per cent or S$0.03 over the initial cash consideration of S$0.37, and a premium ranging between 25.4 and 28.6 per cent over the volume-weighted average price per share over the past 12 months, the group noted in a bourse filing on Wednesday (Nov 2).

It also represents a premium of approximately 16.8 per cent over the net asset value, and 357.1 per cent over the net tangible asset value per share as of Dec 31, 2021, it added.

The offeror does not intend to revise the offer, but reserves right to do so in a competitive situation. Shareholders who have accepted the earlier cash consideration are entitled to the revised final offer price, subject to the offer becoming unconditional, the filing noted.

Called TLW Success, the investment vehicle is equally-owned by SMG’s non-executive chairman Tony Tan Choon Keat, chief executive officer Beng Teck Liang and executive director Wong Seng Weng.

The offer has been raised in appreciation of shareholders’ continued support and also in view of the prevailing market conditions and business environment, noted Beng.

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“The persistence of an uncertain global and economic environment, coupled with the backdrop of a challenging business landscape within the healthcare industry, continues to underscore the critical need to privatise SMG to provide the company with greater management flexibility to deal with significant macroeconomic and operational headwinds and ensure the long-term competitiveness of the company,” he said.

This increased offer price and related costs will not unduly constrain the operations of the company and it can continue to be managed prudently after the privatisation is successfully achieved, he added.