Real estate services provider Rowsley on Monday said it entered into an agreement to acquire Thomson Medical and a 70.36 percent stake in Bursa Malaysia-listed healthcare firm TMCLS for S$1.6 billion.
The deal was entered with Rowsley's controlling shareholder Lim Eng Hock for the acquisition of 100 percent of Sasteria, the owner of Thomson Medical and the controlling shareholder of TMC Life Sciences Berhad (TMCLS).
Rowsley said it would change its name to Thomson Medical Group after the deal, which will help the company expand into the healthcare sector and diversify its portfolio.
Rowsley plans to fund the deal value through 21.3 billion new Rowsley shares at the issue price of S$0.075 per share.
Rowsley will also acquire 597.3 million TMCLS warrants in cash, each at a price equal to the volume-weighted average price of TMCLS Warrants traded on Bursa Malaysia, the company said in a regulatory filing.
After the acquisition, Thomson Medical, Singapore's largest private provider of healthcare services, will continue to grow beyond its current core obstetrics and gynaecology services by expanding its current service offerings and opening more new specialist clinics.
In Malaysia, TMCLS has plans to make its tertiary hospital at Kota Damansara, one of the largest integrated healthcare campuses in the Klang Valley by tripling its current bed capacity, the company said.
Rowsley plans to hold an extraordinary general meeting in the first quarter of 2018.
The company has appointed Credit Suisse (Singapore) as its financial adviser for the proposed acquisition.
Shares in Rowsley last traded at S$0.11 before the trading halt request.