CHA Healthcare Singapore to raise stake in SMG with $36.9 mln investment

CHA Healthcare Singapore, a healthcare unit of South Korea’s CHA Health Systems, has entered into a share purchase agreement to commit 50 million Singapore dollars ($36.9 million) in peer Singapore Medical Group (SMG).

CHA Healthcare has agreed to buy 83 million vendor shares at $0.45 apiece, or a premium of 34.5 percent to SMG's closing price of $0.33 on Tuesday, increasing its stake from 6.86 percent to 24.13 percent.

Upon completion of the share purchase within three months of the agreement date, CHA will become SMG's controlling shareholder. CHA is also extending a convertible loan of $7.3 million to SMG, which will result in the issue of 23.6 million new shares if converted in full.

Singapore Medical plans to use proceeds from the issuance of the convertible loan to further pursue earnings-accretive organic and inorganic opportunities across the region.