Investment holding vehicle raises cash consideration per offer share in SMG

The revised final cash consideration is at $0.40 per offer share.

An investment holding vehicle owned by Singapore Medical Group (SMG) executives revised upward the final cash consideration per offer share to $0.40 from the initial cash consideration of $0.37 per offer share.

In a statement, SMG said the revised cash consideration was up 8.1& and represents an attractive premium between around 25.4% to 28.6% over the volume-weighted average price per share over the past 12 months.

It said the revised offer consideration represents a premia of around 16.8% and 357.1% over the net asset value and net tangible asset value per share respectively, as of 31 December 2021.

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It also added that the final cash consideration of the investment vehicle TLW Success–owned by SMG’s Non-Executive Chairman, Mr Tony Tan Choon Keat, Executive Director and Chief Executive Officer, Dr Beng Teck Liang and Executive Director, Dr Wong Seng Weng–does not aim to revised the Revised Final Offer Consideration and it reserves the right to do in a competitive situation.

Shareholders who have earlier accepted the offer are entitled to the revised final offer consideration but are subject to the offer becoming or being declared unconditional in all respects in line with its terms.

“The persistence of an uncertain global and economic environment coupled with the backdrop of a challenging business landscape within the healthcare industry continues to underscore the critical need to privatise SMG to provide the Company with greater management flexibility to deal with significant macroeconomic and operational headwinds and ensure the long-term competitiveness of the Company,” Liang said.

Liang added that TLW Success believes that the revised cash consideration provides an “attractive and compelling premium” to shareholders who wish to exit from their investment cash.

Offeror TWL Success has received valid acceptances of around 77.42% of the total number of issued shares and 76.23% of the maximum potential number of issued shares as of 2 November 2022, and remains the only offer made by shareholders.