Healthway Medical Corp to restructure its 25% interest in HMD

HMC plans to distribute 40% of its shares in Healthway Medical Development for free.

According to a release, Healthway Medical Corporation Limited plans to restructure its 25% interest in Healthway Medical Development Limited. HMC intends to distribute up to 40% of its shareholding in HMD or 10% of the issued share capital of HMD in specie to HMC shareholders for free without further payment by HMC shareholders and hold the remaining 60% of its shareholding in HMD or 15% of issued share capital of HMD for divestment.

“The HMD was incorporated on September 2010 and started its business development efforts in 1Q 2011. HMD is building an exciting healthcare assets platform for growth. This would include mixed commercial developments with hospitals and medical centers, senior housing developments and medical resorts. We expect to form a network with these assets in Asia, in the major cities in Malaysia, Singapore , China and Japan. As we develop the medical facilities we must also build strong medical services for these properties. This is an essential to deliver quality healthcare, said Jong Hee Sen President of HMD.

Dr Jong added that “We will look to listing of HMD in the next 18 months. We are building our asset portfolio and the pipeline for potential acquisition is strong. The assets portfolio of HMD has the potential to become large, and would well exceed several hundred million. These markets are favourable for the healthcare sector - with their demographics, economic growth and government healthcare policies acting as major catalysts for the growth of the healthcare sector. We have the management team in place to tap on this.”

We are seeking to build a balanced portfolio, comprising of medical properties with development potential and completed properties that we can reposition and re- developed into medical facilities and also medical assets with stabilised income. These medical assets that can generate stablised income will form the essential competencies to the medical platform. Most of the investments will take place in 2012 and these will be funded HMD’s through shareholders’ equity and mainly with borrowings.