Singapore Medical *Official* (SGX: 5OT)

Shion

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Singapore Medical Group in talks with third party on possible share transaction, in response to que

Singapore Medical Group in talks with third party on possible share transaction, in response to query from sponsor

https://www.businesstimes.com.sg/co...-third-party-on-possible-share-transaction-in

SINGAPORE Medical Group is in discussions with a third party regarding a possible transaction involving the company's shares, it said in a filing to the Singapore Exchange late on Friday.

This was in response to a query from its sponsor CIMB Bank Singapore regarding the unusual price movements and the significant volume of trading in the company shares on Friday.

Singapore Medical Group said that talks are preliminary, and that there is no certainty or assurance that such discussions will progress beyond the current stage or that any transaction will materialise as a result.

It will make the appropriate announcements in the event of any material developments which warrant disclosure.

About 30.97 million shares worth S$8.94 million changed hands on Friday. Singapore Medical Group's shares rose three Singapore cents, or 11.32 per cent, to close at 29.5 Singapore cents on Friday.
 

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Brokers' take: No more deal for SMG, but healthcare provider still in growth mode

https://www.businesstimes.com.sg/co...-but-healthcare-provider-still-in-growth-mode
UOB Kay Hian (UOBKH) is maintaining a "buy" call on Singapore Medical Group (SMG) with an unchanged target price of S$0.46.

In a Friday report, the research house said it remained upbeat on SMG's "stellar growth prospects", in terms of "organic clinic growth, expansion overseas and telehealth, which are underappreciated by the market".

This comes after SMG announced that it will no longer be proceeding with a transaction of the group's shares on Thursday. In December last year, the group said that it was in preliminary discussions with a third party regarding a transaction involving SMG's shares.

The group will remain open to exploring various avenues to enhance shareholder value, SMG said in its Thursday bourse filing.

Despite the effects of Covid-19, UOBKH analyst Lucas Teng noted that the company was still in growth mode, and that elective medical procedures remain on the high. Furthermore, the group has a net cash position of S$15.8 million and continues to explore overseas mergers and acquisitions opportunities, he said.

While a transaction could have unlocked value for the group, Mr Teng said that SMG's discounted market valuation is unwarranted given the recovery seen from domestic patient load.

The group trades at an "attractive valuation" with a "proven track record of organic growth", he added.

With SMG's overseas expansion into markets such as Vietnam which taps discretionary spending from the growing middle class and expatriate market, Mr Teng highlights that SMG's growth plans were underappreciated by the market.

Further, SMG has also tapped telemedicine, which saw a boost during the Covid-19 pandemic as more patients grew accustomed to seeking out their doctors online, the analyst said.

He cited "recovery in patient load", "earnings-accretive mergers and acquisitions" and a "stronger traction in high-growth markets, such as Vietnam" to be catalysts of SMG's share price.

The research house is maintaining the "buy" call with an unchanged price to earnings-based target price of S$0.46.

Currently, the stock is trading at 12 times its 2021 earnings, which is about one standard deviation below its five-year average price-to-earnings (PE) ratio, and a discount to peers' average PE.

The counter closed at 34.5 Singapore cents on Friday, up 6.2 per cent or two cents.
 

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SMG chairman, CEO, exec director seek to privatise company at 37 cents per share​


https://www.straitstimes.com/busine...ek-to-privatise-company-at-37-cents-per-share
SINGAPORE - An investment vehicle owned by the top executives at the Singapore Medical Group (SMG) has launched an offer to take the company private at 37 cents per share in cash or one new share in the offeror.

Called TLW Success, the vehicle is equally-owned by SMG's non-executive chairman Tony Tan Choon Keat, chief executive Beng Teck Liang and executive director Wong Seng Weng, the company announced in a Tuesday filing.

The 37 cents cash price represents a premium of 18 per cent over SMG's volume-weighted average price in the past 12 months. It is also 8.1 per cent above the company's net asset value per share as at end-2021.

To date, TLW has received irrevocable undertakings from shareholders, including the three executives behind the offer, holding 51.67 per cent of the company to accept the share alternative of the offer.

The offer is conditional upon the TLW and its concert parties holding more than 90 per cent of the company at the offer's close. TLW intends to make SMG its wholly-owned subsidiary and does not plan to retain its listing status.

The move comes as SMG faces headwinds including operational cost increases, a shortage of skilled healthcare labour and wage increases in the midst of an inflationary environment, the company noted in its announcement.

The privatisation will provide SMG with greater flexibility to execute long-term investments and enhance shareholder value in the long run, said CEO Beng in a press release.

He said: "The offer will effectively allow shareholders to exit at an attractive price while welcoming longer-term oriented shareholders who believe in the company's growth prospects to remain invested in the unlisted entity."

"The company's relatively subdued share price performance over the past 3 years has also constrained its ability to execute inorganic growth initiatives and build upon its track record of growth through acquisitions. Delisting at a time of increased uncertainty will allow the organisation to be more nimble and enable more aggressive strategies for growth," Beng added.

Trading in shares of SMG has been halted since Sept 9.


@Perisher @addict951 @lzydata do you have this ?
 
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Perisher

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SMG chairman, CEO, exec director seek to privatise company at 37 cents per share​


https://www.straitstimes.com/busine...ek-to-privatise-company-at-37-cents-per-share
SINGAPORE - An investment vehicle owned by the top executives at the Singapore Medical Group (SMG) has launched an offer to take the company private at 37 cents per share in cash or one new share in the offeror.

Called TLW Success, the vehicle is equally-owned by SMG's non-executive chairman Tony Tan Choon Keat, chief executive Beng Teck Liang and executive director Wong Seng Weng, the company announced in a Tuesday filing.

The 37 cents cash price represents a premium of 18 per cent over SMG's volume-weighted average price in the past 12 months. It is also 8.1 per cent above the company's net asset value per share as at end-2021.

To date, TLW has received irrevocable undertakings from shareholders, including the three executives behind the offer, holding 51.67 per cent of the company to accept the share alternative of the offer.

The offer is conditional upon the TLW and its concert parties holding more than 90 per cent of the company at the offer's close. TLW intends to make SMG its wholly-owned subsidiary and does not plan to retain its listing status.

The move comes as SMG faces headwinds including operational cost increases, a shortage of skilled healthcare labour and wage increases in the midst of an inflationary environment, the company noted in its announcement.

The privatisation will provide SMG with greater flexibility to execute long-term investments and enhance shareholder value in the long run, said CEO Beng in a press release.

He said: "The offer will effectively allow shareholders to exit at an attractive price while welcoming longer-term oriented shareholders who believe in the company's growth prospects to remain invested in the unlisted entity."

"The company's relatively subdued share price performance over the past 3 years has also constrained its ability to execute inorganic growth initiatives and build upon its track record of growth through acquisitions. Delisting at a time of increased uncertainty will allow the organisation to be more nimble and enable more aggressive strategies for growth," Beng added.

Trading in shares of SMG has been halted since Sept 9.


@Perisher @addict951 @lzydata do you have this ?
Nope… but interesting.
 
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