Healthway Medical

The chairman reduced his stake recently secretly maybe a deal in the works. Hopefully 2013 turnaround for healthway.

2013 will be good or supposed to be good cos they will do someting about their property ambitions. The stoc could reach 12 cents. however, the fact remains that healthcare is a tough business  -- just look at their profit margins these past few years. !

Singapore, 20 December 2012 – Further to the Company’s Circular dated 13 December 2011 and the SGX Announcement and Press Release dated 6 December 2011, the Board of Directors of Healthway Medical Corporation Limited (the “Company” and together with its subsidiaries, the “Group”) wishes to announce that the Company has entered into a sale and purchase agreement on 20 December 2012 with seven (7) individual third party investors to divest part of its 15% stake in Healthway Medical Development Pte Ltd (“HMD”). The transaction involves a direct sale of 35,000 shares (“Sale Shares”) in HMD at $100 per Sale Share to seven (7) individual third party investors for a total cash consideration of S$3.5 million. Every 2.33 Sale Shares gives its holder an option to acquire 1 additional HMD share (“Option Shares”) from HMC, at a total nominal exercise price (the “Option”) (the “Sale”). The Option may be exercised commencing from 1 April 2013 and no later than 12 April 2013. Before the Sale, the Company had 750,000 shares in HMD which are held as an “Available for Sales” (AFS) investment. The Sale imputes a value of S$500 million to HMD and prices the Company’s 15% equity interest in HMD before the Sale at S$52.5 million. Besides this 15% equity interest, there is another 10% equity interest in HMD that would be distributed to HMC shareholders upon the listing of HMD via the distribution in specie which was approved by HMC shareholders on 28 December 2011. The Sale (comprising the Sale Shares and the Option Shares) constitutes 1% equity interest in HMD, leaving the Company with a balance of 14% equity interest in HMD upon completion of the Sale, which the Company intends to divest at an appropriate time in future. Fan Kow Hin, Executive Chairman said, “It is our intention to fully divest our HMD stake in a manner that realises the potential value of HMD. When fully divested, the sale of HMD shares would allow the Company to recognise significant sale gains and fair value gains. HMD has a separate management team. HMD operates and develops large format healthcare projects like medical centres, hospitals and elder care facilities. HMD’s footprint is very much Asian centric, covering countries like Malaysia, China and Japan. Unlike HMD, the Company focuses on developing a network of small clinics providing affordable and quality healthcare in Singapore and China. HMD has appointed a professional team to list its shares on the Singapore Exchange Securities Trading Limited (the “Proposed Listing”) and has commenced preparatory work for the Proposed Listing. At the completion of the proposed acquisitions of HMD’s asset portfolio, HMD would have a footprint in key markets like Malaysia, China and Japan. The listing of HMD will enable HMC shareholders to have a direct stake in HMD with emerging opportunities like the business scope being pursued by HMD.”

Healthway Medical Corporation (HMC) has sold a 1% stake in Healthway Medical Development (HMD) for $3.5 million and still has a 14% stake in HMD. HMD operates and develops large format healthcare projects. HMD is planning for listing in Singapore. Besides the remainng 14% interest in HMD, HMC has another 10% of HMD, to be given to HMC shareholders when HMD is listed.

If stock hits 12 cents, it means a 50% gain as Healthway is now 8 cents.
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[Doc 19-12-2012]:

2013 will be good or supposed to be good cos they will do someting about their property ambitions. The stoc could reach 12 cents. however, the fact remains that healthcare is a tough business  -- just look at their profit margins these past few years. !

10% HMD = 35m = about 20% of HMC market cap Quite substantial, to double up or not?