AHEALTH: Voluntary Take-Over Offer Proposed, Target Price Adjusted
| Investment Bank | TA SECURITIES |
|---|---|
| TP (Target Price) | RM0.25 (+25.0%) |
| Last Traded | RM0.20 |
| Recommendation |
A significant corporate development has emerged with a conditional voluntary take-over offer launched for shares in a prominent healthcare company. The offer, led by Pharmora Investment Holdings Pte Ltd in conjunction with Joint Ultimate Offerors (Quadria Capital Fund III, Dr Kee Kirk Chin, and Apex Holdings Pte Ltd), aims to acquire all remaining ordinary shares at a cash price of RM2.64 per share.
The proposed offer price represents a 2.3% premium over the last closing price of the shares. The offer is conditional upon the offerors securing no less than 90% of the total issued shares. However, it will become unconditional once acceptances surpass the 50% threshold. Notably, key shareholders who collectively hold approximately 71% of the company’s total issued shares have provided irrevocable undertakings to accept the offer. This robust backing significantly increases the likelihood of the offer turning unconditional, paving the way for the company’s privatisation and subsequent delisting from Bursa Malaysia.
Rationale Behind the Offer
The primary strategic objective of this take-over is to privatise and delist the company from Bursa Malaysia, allowing Quadria Capital Fund III, a key offeror, to assume majority control. This move is expected to streamline the ownership structure, thereby enabling greater strategic flexibility for the company to pursue regional expansion, forge new partnerships, and drive long-term growth initiatives. Quadria, a Singapore-based private equity firm with a proven track record in scaling mid-sized healthcare platforms across Asia, intends to leverage its extensive regional healthcare network and expertise to propel the company into a new phase of growth.
Analyst’s Perspective
An investment bank views the proposed offer as attractive, highlighting that it prices the company at approximately 21 times its Price-to-Earnings Ratio (PER), which is above its 5-year historical average PER of 18 times. In light of the take-over offer, the investment bank has revised its target price to RM2.64, aligning it with the offer price. The recommendation for the shares is maintained at Neutral.
