EQT backs offer to privatise SGX-listed healthcare provider HMI

Photo by Ali Yahya on Unsplash

The management of SGX Mainboard-listed Health Management International (HMI) and private equity firm EQT have offered to take the healthcare provider private in a deal that values it at S$611 million ($449 million).

HMI Group owns two tertiary hospitals in Malaysia, as well as a one-stop ambulatory care centre and healthcare training centre in Singapore.

EQT is backing the offer through PanAsia Health Limited, a special purpose vehicle indirectly controlled by EQT Mid Market Asia III GP.

Under the scheme of arrangement, HMI shareholders can either accept a cash consideration of S$0.73 per share or receive new shares in PanAsia, issued at S$0.73. The offer price represents a 24.8 per cent premium over the volume weighted average price (VWAP) of HMI shares over the last one month.

HMI shares last traded at S$0.66 on Thursday before a trading halt was announced on Friday.

In a joint media statement, HMI and EQT said they have received an irrevocable undertaking to accept the offer from HMI shareholders who own an aggregate of 61.8 per cent. These include the Chin family, which owns HMI, and Malaysia’s Maju Medik.

“We welcome EQT as our partner in HMI. Given their deep experience across the various healthcare ecosystems globally, we believe they will add value to HMI’s growth strategy to become one of the leading private healthcare providers in the region,” said HMI Group CEO Chin Wei Jia.

“EQT is excited by the opportunity to invest in a reputable private healthcare provider with a regional Southeast Asian presence and high quality management team,” said Brian Chang, Partner at EQT Singapore and Investment Advisor to EQT GP.

If the scheme of arrangement is passed, EQT will hold a stake of between 18.6 per cent and 30.5 per cent in HMI, while the Chin family will own between 30 per cent and 42.4 per cent.

The Chin family has undertaken to facilitate EQT’s exit from HMI by working towards an initial public offering (IPO) of the offeror within 18 months after four years from the date the scheme is effective.

If an IPO does not materialise, Nam See Investments, a Chin family vehicle, will assist with the sale of EQT’s stake. If the stake sale is not completed by the sixth year, Nam See will write EQT a put option for all its shares.

EQT has committed an equity line of up to $150 million to HMI for any potential acquisitions or investments.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.