OUE unit proposes to privatise OUE Healthcare in S$0.05 per share scheme deal
The price offers a 28.2 per cent premium over the last transacted share price of S$0.039 on Aug 21
Singapore-listed OUE’s wholly-owned subsidiary, Treasure International Holdings, has proposed privatizing regional healthcare group OUE Healthcare (OUEH) through a Scheme of Arrangement at S$0.050 per share in a cash scheme. The scheme values the offer at 28.2% premium over OUEH’s last transacted share price of S$0.039 on Aug 21 and offers a premium over various VWAPs and net asset values.
Low trading volume has been cited as a key factor behind the privatisation effort and the deal aims to provide shareholders who could otherwise struggle to exit their investment with an opportunity to realise their investment at a premium. The scheme also promises management flexibility to execute long-term strategies without public market constraints and allows the company to save on compliance and associated costs of maintaining its listed status.
The company intends to ensure continuity in operations and has no intention of making major changes. Approval by at least 75% in value of scheme shares is required, along with regulatory and court approvals. OUEH will become wholly owned by Treasure International Holdings and will be delisted from the Catalist board upon successful implementation.
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