SingMedical   

Impressive growth in last 3 years

That' s why I said don' t waste our time and his time as well. He is businessman, there are also many businessmen here as well. So if you cannot give a Fair Deal, do you think other people will accept? This is an UNFAIR DEAL quoted by IFA too. 

 

Why would they waste their time to suit the retailers' preference? There is not incentive for them to raise their offer price or sweeten the deal whatsoever. Think from a businessman perspective. Every dollar counts. And that' s why ' not fair, but reasonable' . cheers.

 

Even the IFA stated that the Offer(page 67) is "Not fair, but reasonable." So TLW Success, please don't waste our time and your resources for this type of low baller takeover. Spend more time to expand the business. U know how to count, we investors also know how to count too.

 

Voluntary conditional general offer documents received. Gonna ignore (means reject the offer).

And, https://www.google.com/amp/s/www.theedgesingapore.com/amp/capital/brokers-calls/smg-should-be-valued-closer-singapore-ogs-offer-says-uob-kay-hian-shareholders UOB Kay Hian (UOBKH) is recommending investors of Singapore Medical Group (SMG) reject TLW Success? current offer and wait for a potentially better privatisation deal, though Lim & Tan Securities has flagged the risk of the deal falling through.

 

I thought OKY just announce big billion dollar package to support clinics? I want to see the independent financial adviser say its fair and reasonable.

 

Fully agree with you on all points mentioned. Unfortunately, in the world of small-mid caps on SGX, minorities are severely disadvantaged and subject to the whims of market boom and bust cycles with so many delistings transacting below (perceived) intrinsic value.

n3wbie      ( Date: 06-Oct-2022 17:52) Posted: Feels to me almost that the offeror is playing to the tune of frustrated shareholders who were stuck in a stock that trades sideways for years to throw in the towel now. Valuations offered appeared to be below peers' average and arguably its own historical multiples. Also, think of the multiples that the stock was trading at when it was issuing shares to acquire to grow to its current size. It now trades at 12x PE TTM and if we expect Singapore' s reopening to further support the uptick in medical tourism among others, wouldnt SMG be trading at c.10x PE FY23? Pretty sure that they werent issuing shares at 10x PE to the doctor shareholders whom they bought out. Some of the doctor shareholders were also given shares issued at higher prices - I am surprised that they would be willing to accept for anything less. MambaFinancial89      ( Date: 06-Oct-2022 17:17) Posted: VOLUNTARY CONDITIONAL CASH OFFER FOR ASIAN HEALTHCARE SPECIALISTS LIMITED AT S$0.188 PER SHARE https://links.sgx.com/1.0.0/corporate-announcements/26CTUF6MRSR6CMIN/733582_Press%20Release.pdf This valuation is significantly higher than SMGs offer. The LTM P/E implied by the Offer Price of 20.5x is above the LTM P/E of trading peers of 13.6x and precedent transaction of 16.8x. SMGs offer is in the realm of 10-12x LTM P/E.

 

Feels to me almost that the offeror is playing to the tune of frustrated shareholders who were stuck in a stock that trades sideways for years to throw in the towel now. Valuations offered appeared to be below peers' average and arguably its own historical multiples. Also, think of the multiples that the stock was trading at when it was issuing shares to acquire to grow to its current size. It now trades at 12x PE TTM and if we expect Singapore' s reopening to further support the uptick in medical tourism among others, wouldnt SMG be trading at c.10x PE FY23? Pretty sure that they werent issuing shares at 10x PE to the doctor shareholders whom they bought out.

Some of the doctor shareholders were also given shares issued at higher prices - I am surprised that they would be willing to accept for anything less.

MambaFinancial89      ( Date: 06-Oct-2022 17:17) Posted: VOLUNTARY CONDITIONAL CASH OFFER FOR ASIAN HEALTHCARE SPECIALISTS LIMITED AT S$0.188 PER SHARE https://links.sgx.com/1.0.0/corporate-announcements/26CTUF6MRSR6CMIN/733582_Press%20Release.pdf This valuation is significantly higher than SMGs offer. The LTM P/E implied by the Offer Price of 20.5x is above the LTM P/E of trading peers of 13.6x and precedent transaction of 16.8x. SMGs offer is in the realm of 10-12x LTM P/E.

 

VOLUNTARY CONDITIONAL CASH OFFER FOR ASIAN HEALTHCARE SPECIALISTS LIMITED AT S$0.188 PER SHARE

https://links.sgx.com/1.0.0/corporate-announcements/26CTUF6MRSR6CMIN/733582_Press%20Release.pdf

This valuation is significantly higher than SMGs offer. The LTM P/E implied by the Offer Price of 20.5x is above the LTM P/E of trading peers of 13.6x and precedent transaction of 16.8x. SMGs offer is in the realm of 10-12x LTM P/E. 

 

2. Appointment of Independent Financial Adviser 2.1 The Board wishes to announce that it has appointed ZICO Capital Pte. Ltd. as the independent financial adviser (&ldquo IFA&rdquo ) to advise the directors of the Company who are considered to be independent for the purpose of making a recommendation to Shareholders in respect of the Offer (&ldquo Independent Directors&rdquo ). 

https://www.theedgesingapore.com/news/ma/reject-ttjs-privatisation-offer-says-ifa-offer-price-below-valuation - Reject TTJ&rsquo s privatisation offer, says IFA as offer price below valuation (Zico)

Got hope !!!

 

 

MambaFinancial89      ( Date: 23-Sep-2022 14:34) Posted: Totally agree with you and have no other example except for when  TTJ directors recommended to shareholders to reject the offer after the IFA deemed it to be not fair and not reasonable. Hope to see more independent and objective views from IFAs in future and for IDs to continue to look out for minorities as opposed to being yes men or women.  n3wbie      ( Date: 22-Sep-2022 22:58) Posted: Always had a view on IFA - how are they truly independent if they are hired by the company. I cant imagine companies hiring a consultant who might say ' hey your offer is not fair / not reasonable' - wouldnt that be like shooting yourself in the foot? Case in point, how many IFAs in recent M& A history actually gave a contrarian opinion?

 

Totally agree with you and have no other example except for when  TTJ directors recommended to shareholders to reject the offer after the IFA deemed it to be not fair and not reasonable. Hope to see more independent and objective views from IFAs in future and for IDs to continue to look out for minorities as opposed to being yes men or women. 

n3wbie      ( Date: 22-Sep-2022 22:58) Posted: Always had a view on IFA - how are they truly independent if they are hired by the company. I cant imagine companies hiring a consultant who might say ' hey your offer is not fair / not reasonable' - wouldnt that be like shooting yourself in the foot? Case in point, how many IFAs in recent M& A history actually gave a contrarian opinion?  rach71      ( Date: 22-Sep-2022 17:06) Posted: Have to wait for the Offer Document to see the terms.  Also need Company' s Independent Financial Advisor to give their views so that can make an assessment.

 

Always had a view on IFA - how are they truly independent if they are hired by the company. I cant imagine companies hiring a consultant who might say ' hey your offer is not fair / not reasonable' - wouldnt that be like shooting yourself in the foot? Case in point, how many IFAs in recent M& A history actually gave a contrarian opinion? 

rach71      ( Date: 22-Sep-2022 17:06) Posted: Have to wait for the Offer Document to see the terms.  Also need Company' s Independent Financial Advisor to give their views so that can make an assessment.

 

Just accept and move on to the next possible candidates, Hong Fok!

MambaFinancial89      ( Date: 22-Sep-2022 10:44) Posted: UOB Kay Hian Update Report 22 September 2022 Singapore Medical Group (SMG SP) Reject Offer/S$0.37/Offer Price:S$0.37 General offer of S$0.37/share  SMG received a voluntary conditional general offer to privatise the company at S$0.37/share (cash consideration) or a 1-for-1 new share in the offeror.  TLW Success is equally-owned by SMG&rsquo s Non-Executive Chairman, Executive Director and Chief Executive Officer  and Executive Director. TLW has secured irrevocable undertakings to accept the share consideration in respect of approximately 51.67% of the shares. The offer is conditional upon TLW and concert parties holding more than 90% of the total number of shares at the close of the offer (acceptance condition).  However, the offeror reserves the right to reduce the acceptance condition to a lower minimum acceptance level (but above 50%), subject to obtaining the consent of the Securities Industry Council of Singapore. Wait for a potentially better offer. We recommend investors to wait for a better offer potentially as the offer from TLW Success is not final, and the offer price and/or the acceptance condition(s) are subject to revision. In addition, we think SMG should be valued closer to the recent general offer of Singapore O& G, given its expansion in high-growth markets,onsideration) on 13 Sep 2022. 37/Offer Price: S$0.37*

 

I thought now cannot pull this kind of stunts anymore, SGX don' t allow? Like no fair but reasonable, or fair but unreasonable. HAHA.

ahberngh      ( Date: 22-Sep-2022 19:25) Posted: I have no need to wait for independent advisor, have decided the moment the offer came out. In the past, many times, the independent advisor said the offer was not fair but reasonable.

 

I have no need to wait for independent advisor, have decided the moment the offer came out.

In the past, many times, the independent advisor said the offer was not fair but reasonable.

 

Have to wait for the Offer Document to see the terms.  Also need Company' s Independent Financial Advisor to give their views so that can make an assessment.

 

UOB Kay Hian Update Report 22 September 2022
Singapore Medical Group (SMG SP)
Reject Offer/S$0.37/Offer Price:S$0.37

General offer of S$0.37/share 
SMG received a voluntary conditional general offer to privatise the company at S$0.37/share (cash consideration) or a 1-for-1 new share in the offeror. 

TLW Success is equally-owned by SMG&rsquo s Non-Executive Chairman, Executive Director and Chief Executive Officer  and Executive Director. TLW has secured irrevocable undertakings to accept the share consideration in respect of approximately 51.67% of the shares. The offer is conditional upon TLW and concert parties holding more than 90% of the total number of shares at the close of the offer (acceptance condition). 

However, the offeror reserves the right to reduce the acceptance condition to a lower minimum acceptance level (but above 50%), subject to obtaining the consent of the Securities Industry Council of Singapore.

Wait for a potentially better offer. We recommend investors to wait for a better offer potentially as the offer from TLW Success is not final, and the offer price and/or the acceptance condition(s) are subject to revision. In addition, we think SMG should be valued closer to the recent general offer of Singapore O& G, given its expansion in high-growth markets,onsideration) on 13 Sep 2022. 37/Offer Price: S$0.37*

 

Fine I let go. No time to waste. Mai tu liao. Opportunity cost is huge. good luck folks. cheers.

 

https://dividendpassiveincome.blogspot.com/2022/09/singapore-medical-group-directors-made.html?m=1

 

This was the commentary provided during the half-year reporting. Well, it kinda gels with the consortium rationale for the buyout. Rising wages, inflationary pressures, etc. However, they did not comment on the positive elements which would further enhance the growth of the Company as commented in the half-year reporting. These forward-looking positive elements should be taken into account as well when deriving an offer price.

chiachiawee      ( Date: 14-Sep-2022 14:31) Posted: ' Following a near two-year period of strict border controls and lockdowns, medical tourism has gradually begun to return since April 2022, positively contributing to the Group&rsquo s topline and key specialist verticals such as imaging, oncology and cardiology. The Group expects the gradual resumption of medical tourism demand to continue in 2H2022 driving further growth in the Group. Despite these tailwinds from medical tourism, the healthcare industry has faced an ongoing labour crunch as resignations persist throughout the industry. The replacement cost from these resignations will affect the Group' s cost structure and impact operations. The Group also foresees the need for salary adjustments for existing employees as inflationary pressures drive up salary expectations for both existing and new employees. Nevertheless, the Group remains confident in its diversified business model and continues to chart opportunities for growth. In particular, the Group is looking to further strengthen its position as a leading private specialist healthcare provider within the women&rsquo s and children&rsquo s space through the hiring of new O& G specialists and paediatricians, along with the continued expansion of our regional healthcare services in Indonesia, Vietnam, Australia and beyond. On the organic growth front, the Group expects to further expand through the hiring of new specialists, the opening of new clinics, as well as increasing capacity within existing facilities. These initiatives extend to the Group&rsquo s overseas investments in Australia, Indonesia and Vietnam which continue to garner momentum and have begun to contribute positively to the Group&rsquo s financial performance. The Group is undertaking these efforts against the backdrop of rising demand for private specialist healthcare services, an increasingly ageing population, rising prevalence of chronic diseases and a more health-conscious population. On the inorganic growth front, the Group continues to explore merger and acquisition opportunities in both key and complementary specialist verticals. In addition, the Group continues to explore various avenues and corporate actions to enhance shareholder value. Any material developments on potential future corporate actions will be announced to shareholders accordingly via SGXNet.

 

' Following a near two-year period of strict border controls and lockdowns, medical tourism has gradually begun to return since April 2022, positively contributing to the Group&rsquo s topline and key specialist verticals such as imaging, oncology and cardiology. The Group expects the gradual resumption of medical tourism demand to continue in 2H2022 driving further growth in the Group. Despite these tailwinds from medical tourism, the healthcare industry has faced an ongoing labour crunch as resignations persist throughout the industry. The replacement cost from these resignations will affect the Group' s cost structure and impact operations. The Group also foresees the need for salary adjustments for existing employees as inflationary pressures drive up salary expectations for both existing and new employees. Nevertheless, the Group remains confident in its diversified business model and continues to chart opportunities for growth. In particular, the Group is looking to further strengthen its position as a leading private specialist healthcare provider within the women&rsquo s and children&rsquo s space through the hiring of new O& G specialists and paediatricians, along with the continued expansion of our regional healthcare services in Indonesia, Vietnam, Australia and beyond. On the organic growth front, the Group expects to further expand through the hiring of new specialists, the opening of new clinics, as well as increasing capacity within existing facilities. These initiatives extend to the Group&rsquo s overseas investments in Australia, Indonesia and Vietnam which continue to garner momentum and have begun to contribute positively to the Group&rsquo s financial performance. The Group is undertaking these efforts against the backdrop of rising demand for private specialist healthcare services, an increasingly ageing population, rising prevalence of chronic diseases and a more health-conscious population. On the inorganic growth front, the Group continues to explore merger and acquisition opportunities in both key and complementary specialist verticals. In addition, the Group continues to explore various avenues and corporate actions to enhance shareholder value. Any material developments on potential future corporate actions will be announced to shareholders accordingly via SGXNet.