I have just read the 2Q announcement at the end of which is a teaser. Acquisition of an asset? Wow -- I thought it is no big deal for companies to acquire some asssets. If HW announced it like this, it makes me sit up and take notice. This must be something different from the usual acquisition of assets that companies sometimes make. Will it bring in lots of revenue?
Anyone has a think on this?
The Company is in discussions with several parties in connection with a proposed acquisition of an asset. The Board would like to highlight that as at the date of this announcement, no agreement has been reached on this proposed acquisition and there is no certainty that such a possible transaction will take place. The Company will make the appropriate announcement at the relevant time should circumstances merit such an announcement.
Could this be a prelude to Healthway buying a hospital asset? If this turns out to be the case, it will mean Healthway trying to be a Raffles Medical. Anyone any view?
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[Starry 20-08-2012]:
I have just read the 2Q announcement at the end of which is a teaser. Acquisition of an asset? Wow -- I thought it is no big deal for companies to acquire some asssets. If HW announced it like this, it makes me sit up and take notice. This must be something different from the usual acquisition of assets that companies sometimes make. Will it bring in lots of revenue?
Anyone has a think on this?
The Company is in discussions with several parties in connection with a proposed acquisition of an asset. The Board would like to highlight that as at the date of this announcement, no agreement has been reached on this proposed acquisition and there is no certainty that such a possible transaction will take place. The Company will make the appropriate announcement at the relevant time should circumstances merit such an announcement.
Buy a hospital directly? This is different from the strategy the company articulated in the past -- which is take a stake in HMD which will buy medical assets & offer Healthway the first right of refusal to manage the operations. This is an asset-light approach and makes money in a direct way and assured way, rather than increase its bank borrowings to buy a hospital and take on the risks of operating it.