Shares in Singapore O&G opened at 29.5 cents on the morning of March 9, after the company requested for the lifting of its trading halt after market close on March 8.
The share price represents an 18% surge from the company’s last-closed share price of 25 cents.
The share price surge came after a privatisation offer was made by NewMedCo at 29.5 cents apiece for all the shares in Singapore O&G on March 7.
The offer price represents a premium of around 15.69% over the last transacted price per share of 25.5 cents on March 3, being the last trading day before Singapore O&G’s request for a trading halt.
According to the company, the offer presents shareholders with a “clean cash exit opportunity” to realise its investment in its shares at a premium.
It adds that the trading volume of shares in the company have been generally low with an average daily trading volume of around 116,730 shares, 75,127 shares, 96,852 shares and 138,135 shares over one-, three-, six- and 12 months up to March 3.
Each of these figures represent less than 0.03% of the total number of issued shares within the company.
Following the completion of the offer, Singapore O&G will be delisted. It will become a wholly-owned subsidiary under NewMedCo.
According to the statement put out by UOB on behalf of NewMedCo, Singapore O&G is “unlikely to require access to Singapore equity capital markets to finance its operations in the foreseeable future” as it may tap on other fund sources.
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In addition, Singapore O&G will be able to save on expenses that come with maintaining its listed status.
NewMedCo is a consortium made up of Hanaan Health Group, as well as some of Singapore O&G’s executive directors Beh Suan Tiong and Heng Tung Lan.
Hanaan Health Group, which owns a 57.3% stake in NewMedCo, is the sponsor of the group. It is held by three shareholders, Stork Health Holdings; Dymon special purpose vehicle (SPV), which is wholly-owned by Dymon Asia; Dr Lim Cheok Peng; and Quek Hong Sheng Roy.
Dr Lim is a Fellow of the Royal Colleges of Physicians of Edinburgh and Glasgow and the Academy of Medicine Singapore, with over 40 years of healthcare experience. He was appointed as chairman of the Kidney Dialysis Foundation Limited in August 2019. He also previously served as managing director of IHH Healthcare.
Quek is currently a director at Mediacorp, Leap Philanthropy, the Kidney Dialysis Foundation and the SingHealth Fund-Changi General Hospital Institutional Fund. He is also the chairman and founding governor of St. Joseph's Institution International School and St. Joseph's Institution International Elementary School.
As at 10.30am, shares in Singapore O&G are trading 4.5 cents higher or 18% up at 29.5 cents, representing a 52-week high.
Photo: Bloomberg
