Healthway Medical Corporation to restructure 25% interest in Healthway Medical Development

HMC plans to distribute up to 500,000 shares in HMD, representing approximately 40% of its shareholding in the group.

Healthway Medical Corporation Limited announced that it plans to undertake a proposed shareholding restructuring exercise to restructure its 25% interest in Healthway Medical Development (Private) Limited. HMC currently holds 25% of the issued share capital of HMD.

HMC plans to distribute up to 500,000 shares in HMD, or such number of shares that the 500,000 shares in HMD may be sub-divided into, representing approximately 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.

Mr Lam Pin Woon, President of HMC said, “HMC’s 10% shareholding in HMD will be held in trust for the distribution in specie until the proposed listing of HMD, which is expected in the next 18 months, assuming its acquisition strategy is successfully completed and market conditions for capital markets are favourable for listing. HMC shareholders will receive the free shares only at the proposed listing of HMD.”

On its remaining shareholding in HMD amounting to 15% of the issued share capital of HMD, held by HMC for divestment, Mr Lam said, “There are no specific buyers for these stakes, and the Company wil maximise the returns. We will deploy this to strengthen its outpatient services and balance sheet.”

On the proposed listing of HMD, Dr Jong Hee Sen, President of HMD said, “We are developing the assets portfolio of HMD. The assets portfolio of HMD has the potential to become very substantial as we have identified certain real estate developments for acquisition and have a strong pipeline of deal flows in Southeast Asia, China and Japan.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.”