HMI to consolidate ownership of two Malaysian hospitals for $183.2m

Graphic from Health Management Group's website

Singapore-listed Health Management Group (HMI) announced Friday that it will consolidate the ownership of its two hospitals in Malaysia to  to 100% each for a total purchase price of RM556.6 million ($183.2 million).

The consolidation of 48.9 per cent-owned Mahkota Medical Centre (MMC) and 60.8 per cent-owned Regency Specialist Hospital (RSH) to complete ownership will better help its regional growth strategy and create an enlarged listed healthcare platform, the company said.

Ms Chin Wei Jia, its Group Chief Executive Officer said, “With an enlarged scale as a result of the Consolidation, HMI will have greater operational flexibility and funding options to pursue our regional growth strategy. The Consolidation will also unlock value for HMI shareholders, who are expected to benefit from an immediate accretion to earnings per share and net profit attributable to shareholders.”

In a filing to the Singapore Exchange, the group said the deal will be financed through a combination of cash and new HMI shares to be issued to the non-controlling shareholders of MMC and RSH.

The cash component of the consolidation will be funded primarily by a S$62 million senior secured five-year term loan, a renounceable rights issue of new HMI shares of up to S$18.5 million and internal cash resources.

The rights issue of up to 32.4 million shares will be offered at $0.57 Singapore cents each on the basis of 11 rights shares for every 200 HMI shares.

The Singapore-listed firm will also issue an aggregate 199.8 million consideration shares at the issue price of $0.57 Singapore cents each which represents a discount of 5.8 per cent to the closing price of HMI shares as at Nov 10.

Credit Suisse (Singapore) Limited is the sole financial advisor to HMI for the Consolidation, and Credit Suisse AG, Singapore Branch is also providing the Term Loan Facility. OCBC Bank is advising HMI with respect to and will act as the manager for the Rights Issue.

The consolidation is expected to be completed in March 2017.

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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).

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  • 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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