Thomson Medical – BT

Thomson Medical in Vietnam pact

THOMSON Medical Centre said that it has signed a subscription option agreement to take up a 25 per cent stake in a hospital in Vietnam that it helped plan.

The mainboard-listed healthcare provider did not say what the agreed price or the fair value of the hospital is. But it has been offered the same price per share as that paid for the founders’ shares.

The acquisition target is the Hanh Phuc International Women and Children Hospital. The private 260-bed hospital is located in Binh Duong province and will be completed in Q3 next year. The subscription agreement follows a five-year management contract inked in 2006 for Thomson Medical to plan and manage the Hanh Phuc hospital and two other hospitals in Vietnam.

The subscription pact was sealed between Thomson Medical’s wholly owned subsidiary, Thomson International Health Services, and Hanh Phuc International Women & Children Hospital Joint Stock Co (Hanh Phuc JSC), which owns the hospital. It may be exercised before the new hospital is three years old.

Thomson International also has a put option agreement with Prosper Joint Stock Co, a shareholder of Hanh Phuc JSC. The company has the right to sell its shares in the Vietnam hospital to Prosper JSC if its management contract is terminated during or after the five-year term. It may also do so if there is any significant change to the ownership or management structure of its Vietnamese partner.

The put option price was not stated, but it will be based on the fair value of Han Phuc JSC as assessed by an independent party jointly approved by the parties.

Thomson Medical has been making inroads into the Vietnam market in recent years. The company is planning to set up a fertility centre in Vietnam. For the six months ended February, the group posted a 28.3 per cent gain in net profit to $5.7 million.

Shares of Thomson Medical last traded at 65 cents on Tuesday.

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