TERTIARY healthcare services provider TalkMed Group on Monday (Dec 23) announced that it has received a privatisation proposal from TW Troy, a special purpose vehicle managed by Tamarind Health.
The offer by TW Troy is made by way of scheme of arrangement. It is offering S$0.456 in cash per scheme share. This represents a 20 per cent premium to the last traded price of S$0.38 on Apr 5.
It also represents a premium of about 22.6 per cent, 22.9 per cent, 21.6 per cent and 16.3 per cent over the volume weighted average price per share for the one-month, three-month, six-month and 12-month periods, respectively, up to Apr 5.
Apr 5 is the last undisturbed trading day for TalkMed as the company disclosed the following day that it received interest from parties considering a stake acquisition.
The offer price of S$0.456 a share is also 629.6 per cent higher than TalkMed’s net asset value per ordinary share of S$0.0625 as at Jun 30, according to the company’s last published financial statements.
TalkMed is a mainboard-listed company providing medical oncology, stem cell transplants and palliative care services. It has operations in Singapore and the region.
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The company noted that the offer provides shareholders with an opportunity to “realise their investment in the shares at a premium”.
It added that the transaction also allows investors to exit their investment in a “low trading liquidity environment”, without incurring brokerage and other trading costs.
Wider range of services
The deal is expected to improve patient care as a wider range of services and expertise will be brought together under a single organisation, said TalkMed.
“The combined entity will be better positioned to attract patients from the region seeking high-quality and competitive treatment, strengthening Singapore’s role as a hub for medical tourism,” it added.
Ang Peng Tiam, TalkMed’s chief executive, said that the transaction will allow “collaboration within a bigger oncology network”.
“This means improved access to innovative treatments and a wider range of deep medical expertise,” he added.
Tamarind is a pan-Asian oncology-focused group headquartered in Singapore. It is controlled by alternative asset manager Templewater and its affiliates.
As part of the deal, 65 Equity Partners, a Singapore-based global investment firm backed by Temasek, will subscribe for shares in Tamarind Health through its local enterprise fund.
After the transaction, 65 Equity Partners will hold about 18.3 per cent of the voting interest in Tamarind Health, while doctor shareholders will hold about 31.3 per cent.
Shares of TalkMed closed 3.3 per cent or S$0.015 lower at S$0.435 on Friday.
