Medical group Tamarind Health, with the backing of investors including Temasek unit 65 Equity Partners, is offering 45.6 cents per share to privatise cancer specialist TalkMed Group, valuing the company at more than $606 million.
As part of its longer-term growth plans, the enlarged entity might then seek its own listing on the Singapore Exchange .
The offer is made via TW Troy, a vehicle held by Tamarind Health, whose investors include Hong Kong-based Templewater and 65 Equity Partners.
TalkMed, whose main operating entity is the Parkway Cancer Centre, last changed hands at 44 cents, up 17.57% year to date.
A group of doctors who founded TalkMed, with a total stake of 83.06% between them, have given their irrevocable understanding to sell their shares. They are CEO Ang Peng Tiam; Khoo Kei Siong; Lim Hong Liang, and Teo Cheng Peng.
TalkMed first flagged the possibility of an offer on April 6.
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As indicated on its website, TalkMed runs 9 centres located across 3 hospitals under IHH Healthcare : Mount Elizabeth Orchard, Mount Elizabeth Novena and Gleneagles. In addition, it is present in China and Vietnam too under the brand “Singapore Cancer Centre”.
Tamarind Health, on the other hand, operates the likes of OncoCare, Solis, Luma, CanCare and Novena Heart Centre in Singapore, Icon Cancer Centre in Hong Kong, OncoCare and Can-Care in Malaysia, and Central Luzon Integrated Oncology Centre in the Philippines.
As part of the transaction, 65 Equity Partners will subscribe for shares in Tamarind Health through its Local Enterprise Fund.
Upon completion of the transaction, 65 Equity Partners, which has an AUM of $4.5 billion, will hold around 18.3% of the voting interest in Tamarind Health while the doctor shareholders will hold around 31.3%.
As indicated in the offer announcement, the deal is conditional on approval obtained from regulatory bodies such as the Singapore Exchange and also the Competition and Consumer Commission of Singapore.
According to the announcement, the combination of these various entities under TalkMed and Tamarind Health will bring together a wider range of services and expertise, strengthen knowledge sharing among healthcare professionals, and create avenues for oncologists to sub-specialise further.
"This will provide more specialised oncology care for patients and career progression opportunities for doctors.
"The combined entity will be better positioned to attract patients from the region seeking high-quality and competitive treatment, strengthening Singapore’s role as a hub for medical tourism.
"As part of its long term growth strategy, the combined entity may consider the option of a future listing on the Singapore Exchange."
