Thomson Medical – DMG
Peter Lim makes GO at S$1.75
Peter Lim, Singapore’s billionaire private investor, has acquired a 39.34% stake in Thomson Medical from Dr Cheng Wei Chen and his family (founder and largest shareholder) at S$1.75/share, a 62% premium over the last traded price. The purchase was made via a married deal between Cheng and Lim’s investment holding company, Sasteria. Pursuant to Singapore’s Code on Takeovers and Mergers, the cash offer will be extended to the remaining issued shares and is conditional upon Sasteria acquiring more than 50% of the Group. Given that this prices the stock at a lofty 30x FY11 P/E, a level not seen before, we believe that investors should accept the offer.
Strong interest in healthcare. Lim has been snapping up healthcare holdings in the past few months. He took up a 29.6% stake in Malaysia-listed TMC Life, which specialises in fertility treatment and stem cell banking. He is the second largest shareholder. More recently, he accumulated a 7% stake in SGX-listed Healthway, but has since pared down to a touch below 5%. Lim is likely to seek synergies with his healthcare holdings, particularly Thomson Medical and TMC Life.
Implications for other healthcare stocks. This takeover could have a positive spillover impact on the one other major healthcare player listed on SGX – Raffles Medical Group. At S$2.18, it is currently trading at 24.5x FY11 P/E. We have a BUY on the counter, with a TP of S$2.40.
Thomson Medical – BT
Peter Lim goes from soccer to scalpels
Prominent investor launches general offer for Thomson Medical Centre at $1.75 a share, valuing the obstetrics and gynae services provider at about $513 million
FRESH from his foray into the soccer business, Singapore’s high-profile investor Peter Lim is now looking to find the back of the net with an investment of a different sort.
Once dubbed the ‘remisier king’, Mr Lim appears to be beefing up his investment portfolio with healthcare assets in a serious way.
Mr Lim yesterday offered to buy the rest of Thomson Medical Centre’s shares which he does not own, following his acquisition of a 39.34 per cent stake in the obstetrics and gynaecology (O&G) services provider.
The offer, at $1.75 per share, represents a 62 per cent premium over Thomson Medical’s last traded price of $1.08, and values the company at about $513 million. It is also the highest price the company’s shares have ever been valued at since its listing in 2005.
The general offer was triggered by a married deal between Sasteria Pte Ltd, an investment holding company wholly owned by Mr Lim, and the founding Cheng family. Dr Cheng Wei Chen, who is known for delivering Singapore’s first triplets by in-vitro fertilisation, set up Thomson Medical more than 30 years ago. It was then largely a maternity hospital but has since grown to include paediatric, fertility, cancer and aesthetics services, as well as traditional Chinese medicine. It also operates seven O&G clinics across the island.
Explaining the rationale for the move, Mr Lim said in a statement: ‘Thomson Medical is a leading healthcare service provider in Singapore for obstetrics, gynaecology and paediatric services. Given the growing population and affluence in the region, there will be increasing demand for private healthcare services.
‘Singapore is a regional hub for such services and Thomson Medical is well-placed to tap on this demand. We believe it has potential to develop further as a regional healthcare company.’
The cash offer is conditional on Sasteria acquiring more than 50 per cent of Thomson Medical.
BT understands that Thomson Medical had been approached by other suitors before, being one of a handful of private healthcare providers here. On Tuesday, the group had announced full-year net profit of $15.88 million, 24.2 per cent higher than a year ago. For the 12 months ended August, revenue rose 21.2 per cent to $81.67 million.
According to previous media reports, Mr Lim, 57, also owns a 29.6 per cent interest in Malaysia’s TMC Life Sciences, a healthcare services provider specialising in fertility treatment, stem cell banking and stem cell therapy.
The stake, which was bought in August for an undisclosed sum, makes him the second-largest shareholder in TMC Life Sciences. TMC Life Sciences also runs a 180-bed hospital in Petaling Jaya.
A few months ago, Mr Lim raised his stake in Healthway Medical Corp to over 7 per cent. Although he has since sold down that interest, he still owns about 4.8 per cent in the primary healthcare chain.
Mr Lim is ranked Singapore’s eighth richest man by Forbes Asia with a net worth of US$1.6 billion. Mr Lim, who made his fortune in the stock market, has varied investments in sectors such as agribusiness, education, fashion, logistics, and F&B. The publicly-known holdings in his portfolio include Wilmar International, Global Logistic Properties, FJ Benjamin Holdings and Informatics Education.
A few weeks ago, Mr Lim also made headlines by launching a £300 million (S$622 million) bid for Liverpool Football Club. Although that deal did not go through, the prospect of a Singaporean-owned English football club generated excitement among local fans.
Thomson Medical – BT
Peter Lim goes from soccer to scalpels
Prominent investor launches general offer for Thomson Medical Centre at $1.75 a share, valuing the obstetrics and gynae services provider at about $513 million
FRESH from his foray into the soccer business, Singapore’s high-profile investor Peter Lim is now looking to find the back of the net with an investment of a different sort.
Once dubbed the ‘remisier king’, Mr Lim appears to be beefing up his investment portfolio with healthcare assets in a serious way.
Mr Lim yesterday offered to buy the rest of Thomson Medical Centre’s shares which he does not own, following his acquisition of a 39.34 per cent stake in the obstetrics and gynaecology (O&G) services provider.
The offer, at $1.75 per share, represents a 62 per cent premium over Thomson Medical’s last traded price of $1.08, and values the company at about $513 million. It is also the highest price the company’s shares have ever been valued at since its listing in 2005.
The general offer was triggered by a married deal between Sasteria Pte Ltd, an investment holding company wholly owned by Mr Lim, and the founding Cheng family. Dr Cheng Wei Chen, who is known for delivering Singapore’s first triplets by in-vitro fertilisation, set up Thomson Medical more than 30 years ago. It was then largely a maternity hospital but has since grown to include paediatric, fertility, cancer and aesthetics services, as well as traditional Chinese medicine. It also operates seven O&G clinics across the island.
Explaining the rationale for the move, Mr Lim said in a statement: ‘Thomson Medical is a leading healthcare service provider in Singapore for obstetrics, gynaecology and paediatric services. Given the growing population and affluence in the region, there will be increasing demand for private healthcare services.
‘Singapore is a regional hub for such services and Thomson Medical is well-placed to tap on this demand. We believe it has potential to develop further as a regional healthcare company.’
The cash offer is conditional on Sasteria acquiring more than 50 per cent of Thomson Medical.
BT understands that Thomson Medical had been approached by other suitors before, being one of a handful of private healthcare providers here. On Tuesday, the group had announced full-year net profit of $15.88 million, 24.2 per cent higher than a year ago. For the 12 months ended August, revenue rose 21.2 per cent to $81.67 million.
According to previous media reports, Mr Lim, 57, also owns a 29.6 per cent interest in Malaysia’s TMC Life Sciences, a healthcare services provider specialising in fertility treatment, stem cell banking and stem cell therapy.
The stake, which was bought in August for an undisclosed sum, makes him the second-largest shareholder in TMC Life Sciences. TMC Life Sciences also runs a 180-bed hospital in Petaling Jaya.
A few months ago, Mr Lim raised his stake in Healthway Medical Corp to over 7 per cent. Although he has since sold down that interest, he still owns about 4.8 per cent in the primary healthcare chain.
Mr Lim is ranked Singapore’s eighth richest man by Forbes Asia with a net worth of US$1.6 billion. Mr Lim, who made his fortune in the stock market, has varied investments in sectors such as agribusiness, education, fashion, logistics, and F&B. The publicly-known holdings in his portfolio include Wilmar International, Global Logistic Properties, FJ Benjamin Holdings and Informatics Education.
A few weeks ago, Mr Lim also made headlines by launching a £300 million (S$622 million) bid for Liverpool Football Club. Although that deal did not go through, the prospect of a Singaporean-owned English football club generated excitement among local fans.
SMRT – BT
SMRT’s Q2 profit down 13.3% to $45.8m
HIGHER operating expenses and lower average fares caused SMRT Corp’s net profit to fall 13.3 per cent to $45.8 million in the second quarter ended Sept 30, 2010.
But group revenue was 7.2 per cent higher at $246.0 million, thanks to strong growth in train and bus ridership and higher rental and advertising revenue.
Singapore’s biggest rail operator said revenue also benefited from the contribution from Circle Line Stages 1 and 2, though this was partly offset by lower revenue from the Palm Jumeirah Monorail project in Dubai.
Revenue from the rail business jumped 7.8 per cent to $133 million. SMRT also runs a fleet of buses and taxis. Revenue from buses rose 7.2 per cent to $54.7 million on higher ridership, while taxi revenue increased 4.5 per cent to $18.7 million on a larger hired fleet.
But average MRT fares fell about one per cent after distance-based fares were introduced on July 3.
At the same time, total operating expenses in Q2 rose 10.9 per cent to $193.8 million, mainly on higher staff, repair and maintenance (R&M) and energy costs.
Staff costs rose 9.6 per cent to $77.8 million after the Jobs Credit scheme ended on June 10.
The opening of the Circle Line also ate into SMRT’s bottom line because despite average daily ridership increasing to 154,000, it is still below the projected ridership of 200,000.
‘Though Circle Line ridership has increased, the losses of Circle Line continue to impact the group results,’ said SMRT president and CEO Saw Phaik Hwa.
Basic earnings per share for Q2 dropped 13.3 per cent to three cents from 3.5 cents.
For the first half, SMRT posted net profit of $84 million, or 16.8 per cent lower than the same period a year ago. H1 revenue was $481.4 million, or an 8.1 per cent rise. H1 basic earnings per share fell 16.9 per cent to 5.5 cents, from 6.7 cents.
An interim ordinary dividend of 1.75 cents per share has been declared, equivalent to a dividend of $26.6 million.
SMRT shares closed unchanged at $2.05 yesterday.
SMRT – BT
SMRT’s Q2 profit down 13.3% to $45.8m
HIGHER operating expenses and lower average fares caused SMRT Corp’s net profit to fall 13.3 per cent to $45.8 million in the second quarter ended Sept 30, 2010.
But group revenue was 7.2 per cent higher at $246.0 million, thanks to strong growth in train and bus ridership and higher rental and advertising revenue.
Singapore’s biggest rail operator said revenue also benefited from the contribution from Circle Line Stages 1 and 2, though this was partly offset by lower revenue from the Palm Jumeirah Monorail project in Dubai.
Revenue from the rail business jumped 7.8 per cent to $133 million. SMRT also runs a fleet of buses and taxis. Revenue from buses rose 7.2 per cent to $54.7 million on higher ridership, while taxi revenue increased 4.5 per cent to $18.7 million on a larger hired fleet.
But average MRT fares fell about one per cent after distance-based fares were introduced on July 3.
At the same time, total operating expenses in Q2 rose 10.9 per cent to $193.8 million, mainly on higher staff, repair and maintenance (R&M) and energy costs.
Staff costs rose 9.6 per cent to $77.8 million after the Jobs Credit scheme ended on June 10.
The opening of the Circle Line also ate into SMRT’s bottom line because despite average daily ridership increasing to 154,000, it is still below the projected ridership of 200,000.
‘Though Circle Line ridership has increased, the losses of Circle Line continue to impact the group results,’ said SMRT president and CEO Saw Phaik Hwa.
Basic earnings per share for Q2 dropped 13.3 per cent to three cents from 3.5 cents.
For the first half, SMRT posted net profit of $84 million, or 16.8 per cent lower than the same period a year ago. H1 revenue was $481.4 million, or an 8.1 per cent rise. H1 basic earnings per share fell 16.9 per cent to 5.5 cents, from 6.7 cents.
An interim ordinary dividend of 1.75 cents per share has been declared, equivalent to a dividend of $26.6 million.
SMRT shares closed unchanged at $2.05 yesterday.