The S$1.6 bil Thomson Medical acquisition by Rowsley from Singapore billionaire tycoon Peter Lim is to be paid mostly in stock.
The Thomson Medical acquisition by Rowsley is one of the most talked about acquisitions of the season. What do you need to know about it?
Rowsley is Singaporean tycoon Peter Lim's listed entity on the Singapore Exchange (SGX). They are acquiring Thomson Medical through its holding company, Sasteria. This deal is worth S$1.6 billion.
Sasteria is also owned by Peter Lim. The deal is to be paid mostly in stock to Lim. Lim, a stockbroker-turned-property-tycoon, is estimated to be worth $2.4 billion by Forbes.
Through the Thomson Medical acquisition, Rowsley will have a 70.36 percent stake in Malaysian-listed TMC Life Sciences (TMCLS).
Rowsley will issue 21.3 bil new shares at S$0.075 per share and acquire 597 mil TMCLS warrants in cash. After the new shares are issued, Lim will own 90.07 percent of Rowsley, up from 45.36 percent.
The Thomson Medical acquisition will change Rowsley's focus on real estate and hospitality towards healthcare. It is also proposing to change its name to Thomson Medical Group.
Rowsley chairman Ng Ser Miang says post-acquisition, Rowsley will be one of SGX's largest healthcare players.
Both Thomson Medical and TMCLS have plans to capitalise on the changing demographics of Southeast Asia. It is projected to see an acceleration in growth for private healthcare in the region.
To meet this demand in Singapore, Thomson Medical will open more specialist clinics and offer more services.
Meanwhile in Malaysia, TMCLS intends to continue its expansion. It will make Tropicana Medical Centre in Kota Damansara one of the largest integrated healthcare facilities in the Klang Valley.
Its plan is to increase its bed capacity to 600. TMCLS also plans to expand into Johor Bahru through the proposed Thomson Iskandar Medical Hub.
The integrated development will feature a 500-bed tertiary hospital, a 400-suite medical tower and a complementary retail space.
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