SGX-listed healthcare firm TalkMed Group has received an offer to be taken private by Templewater-backed Tamarind Health Limited, per an announcement.
Through a special purpose vehicle (SPV) called TW Troy Limited, Tamarind Health Limited has offered to buy TalkMed for S$0.456 apiece, valuing the business at S$606 million ($447 million).
The offering price represents a premium of approximately 22.6%, 22.9%, 21.6% and 16.3% over the volume weighted adjusted price per share for the one-month, three-month, six-month and 12-month periods respectively, up to the company’s last full trading day of April 5, 2024, TalkMed said in its filing to the SGX.
Singapore-based TalkMed provides medical oncology, stem cell transplant and palliative care. It also has operations in Vietnam and China.
Meanwhile, Tamarind Health is a pan-Asian, oncology-focused group that is present across Singapore, Hong Kong, Malaysia and the Philippines.
Temasek-backed private equity investor 65 Equity Partners will support the privatisation transaction by subscribing for an 18.3% voting interest in Tamarind Health, through its Local Enterprise Fund.
Templewater will hold 50.4% of Tamarind Health, while the doctor shareholders will hold approximately 31.3%.
“The transaction is expected to improve patient care by bringing together a wider range of services and expertise under a combined entity. It will strengthen knowledge sharing among healthcare professionals, and create avenues for oncologists to sub-specialise further,” TalkMed said in a statement.
It added that the combined entity may consider a future listing on the SGX as part of its long-term growth.
TalkMed’s revenue in H1 2024 decreased 12.4% from S$37.8 million in the first half of last year, while its profit eroded 31.1% from S$12.5 million to S$8.6 million.
Listed companies are going private again with the backing of private equity funds due to low liquidity on the public market. Last month, SGX-listed hotel group Amara Holdings reached an agreement to be privatised, led by a consortium consisting of its founding family and alternative firm Dymon Asia.
Earlier deals on the bourse were BreadTalk and corporate services provider Boardroom in which 65 Equity Partners and Tower Capital Asia invested.
In August this year, alternatives major EQT announced its plan to acquire PropertyGuru to delist the Southeast Asian property technology platform from the New York Stock Exchange.
Earlier this year, DealStreetAsia wrote that Hong Kong also witnessed more take-private deals as its stock market seemed to be losing appeal.
Reuters
