OUE Healthcare details 3 factors behind Healthway Medical’s delisting from SGX-ST

The proposed conditional exit offer for HMC’s delisting is $0.048 per offer share.

OUE Healthcare (OEUH), the parent company of OUEH Investments, which holds more than 50% of Healthway Medical Corporation’s (HMC) shares, detailed its rationale for seeking the latter’s delisting from the  Singapore Exchange Securities Trading Limited (SGX-ST).

In an exit offer letter issued by OUE Healthcare on 5 September, the company said HMC’s delisting is a “milestone step to build a regional healthcare ecosystem.”

“OUEH’s current regional healthcare ecosystem comprises a respiratory and cardiothoracic specialist group with 11 specialist doctors and two cardiothoracic surgeons in Singapore, two operating hospitals and one hospital under development in China, three hospitals, two medical towers and three primary care clinics in Myanmar, as well as a controlling stake in First Real Estate Investment Trust,” the company said.

“HMC is a respected medical group with over 30 years of experience in Singapore healthcare. With over 100 clinics and medical centres in its network, HMC provides a comprehensive spectrum of services covering primary care, secondary care and ancillary care, which includes general practitioners and family medicine clinics, health screening, specialists, dental services and allied healthcare services,” the healthcare provider added.

OUEH added that HMC’s delisting will harness potential synergies between both parties.

“The enlarged OUEH group will serve as a collaborative regional platform for all of OUEH’s healthcare business verticals to grow, develop and scale their businesses in the region, including HMC. OUEH will also be well-positioned to provide a comprehensive spectrum of healthcare services across preventive, interventive, diagnostics, treatment, aftercare and other ancillary healthcare services. In addition, the Exit Offer will provide opportunities on cost savings through streamlining of operations and economies of scale,” the healthcare group said.

Lastly, OUEH said the exit offer will also enable them “to tap into the growing Singapore healthcare market, including the Healthier SG Initiative.

“The national shift towards preventive care from reactive care will also drive healthcare innovations that will translate into new business opportunities for private healthcare players,” the company added.