Shares of Singapore-listed Rowsley jumped as much as 62 percent on Wednesday after the realty firm said it planned to buy healthcare assets valued at S$1.9 billion from its controlling shareholder, billionaire Peter Lim.
The deal will help Rowsley expand into the healthcare sector and diversify its portfolio.
"This proposed acquisition is an opportunity for us to acquire controlling stakes in two established healthcare assets in Singapore and Malaysia and be part of an expanding business," Rowsley's Chairman Ng Ser Miang said in a statement on Tuesday.
The proposed acquisition is an all-share deal for a 100 percent stake of hospital operator Thomson Medical Pte Ltd and a 70.36 percent stake of TMC Life Sciences Berhad, a Bursa Malaysia listed healthcare services provider.
Billionaire Lim, the owner of Spanish football club Valencia, has a 45.34 percent stake in Rowsley, Reuters reported.
The proposed acquisition, which is expected to be completed within two months, will be financed through the issuance of new shares to be issued at S$0.075 per share, company said.
Upon completion, Rowsley plans to issue bonus warrants to existing shareholders in the ratio of 2:1.
Shares of Rowsley were up 57 percent at S$0.115. The stock had fallen about 7 percent so far this year.