Excerpts from UOB Kay Hian report
Analyst: Lucas Teng
Potential Share Offer On The Horizon?
HMI announced a possible share transaction with a third party. While discussions have not been finalised, the stock is up 18% since 18 May and 5% in the past week.
We have a BUY for its positive longer-term prospects, with a DCF-based target price of S$0.73. |
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WHAT’S NEW
• Announcement of possible share transaction. Health Management International (HMI) announced on 17 Jun 19 that it is in discussions with a third party regarding a possible transaction involving the company’s shares.
Chief Investment Officer Chin Wei Yao | CEO Chin Wei Jia. NextInsight file photoThe discussions are ongoing and the company has not made any decision regarding the possible transaction.
There is no certainty or assurance that these discussions will progress beyond the current stage or that any such transaction will occur.
• Shareholder ownership in controlling stake. According to HMI’s annual report 2018, controlling shareholder - Dr Chin Koy Nam - has a deemed interest in the company, held by Nam See Investment (Pte) Ltd, her spouse and her children, totalling 322.6m shares (38.5%).
Including other substantial shareholders, their total stake was 68.8%.
We note some of the key shareholdings from its annual report below.
|
Selected key shareholdings |
No. of Shares |
% Ownership |
|
Nam See Investment (Pte) Ltd |
297,755,183 |
35.6 |
|
Maju Medik (Malaysia) Sdn Bhd |
154,203,259 |
18.4 |
|
Kabouter Management, LLC |
50,742,206 |
6.1 |
|
Cheah Way Mun |
28,207,688 |
3.4 |
|
Orchid 2 Investments Pte Ltd |
19,855,426 |
2.4 |
|
Dr Gan See Khem |
10,765,853 |
1.3 |
|
Chin Wei Jia |
5,317,200 |
0.6 |
|
Chin Koy Nam |
4,266,420 |
0.5 |
|
Tan Chin Tiong |
2,411,336 |
0.3 |
|
Chin Wei Yao |
2,265,718 |
0.3 |
|
Total |
68.8 |
|
|
Source: HMI, Bloomberg |
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• Other notable corporate actions from stakeholders. To recap, HMI had also conducted a placement to Heliconia Capital Management, a wholly-owned subsidiary of Temasek Holdings in Nov 17.
This was for 16.9m ordinary shares, about 2% of the total shares, at an issue price of S$0.65 per share and an aggregate issue price of S$11.0m.
Maju Medik is also a stakeholder, which had been issued consideration shares and rights shares, post-consolidation of HMI’s non-controlling stake in its Malaysian hospitals in Nov 16.
Full report here.