Singapore Medical Group - UOB Kay Hian 2022-11-09: An Improved & Final Offer

• Singapore Medical Group received a revised general offer of S$0.40/share (up from S$0.37/share) from TLW on 2 Nov 22. We recommend shareholders to accept the offer, given that it:
  1. falls within the fair value range of S$0.39-0.46 of the IFA;
  2. - Read this at SGinvestors.io -
  3. is close to our last target price of S$0.45 (14x 2022F EPS).
• If the offer fails, Singapore Medical Group's Share Price could trend downwards significantly. The offer closing date is 15 Nov 22.

Revised voluntary conditional offer of S$0.40 per Singapore Medical Group share from TLW Success.

• In Sep 22, TLW Success (TLW) made a voluntary conditional general offer to privatise Singapore Medical Group (SGX:5OT) at S$0.37/share (cash consideration) or a 1-for-1 new share in the offeror (share consideration). This was later revised to S$0.40/share in Nov 22.
• - Read this at SGinvestors.io -
• 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). The offeror, TLW, has also indicated that it does not intend to revise the offer price, but reserves the right to do so in a competitive situation.

IFA concluded that the original offer was reasonable, advised to accept the offer.

• Read more at SGinvestors.io.

Heidi Mo UOB Kay Hian Research | https://research.uobkayhian.com/ 2022-11-09 SGinvestors.io

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