Singapore's TalkMed shares jump on $447 million privatization offer

Singapore's TalkMed Group (SGX:TALK ) shares jumped on Monday after the company received a bid from TW Troy to take the company private, valuing it at S$606.1 million ($447.24 million).

TW Troy, indirectly owned by oncology-focused group Tamarind Health, offered to buy TalkMed for S$0.456 per share, representing a nearly 5% premium to the stock's last close on Friday.

"The transaction is expected to improve patient care by bringing together a wider range of services and expertise under a combined entity," the companies said in a joint statement.

TalkMed shares jumped nearly 6% to S$0.460, surpassing the offer price.

"This partnership is an extraordinary opportunity to improve care for cancer patients. The combined entity opens up opportunities for collaboration within a bigger oncology network. This means improved access to innovative treatments and a wider range of deep medical expertise," TalkMed CEO Ang Peng Tiam said in a statement.

As part of the transaction, 65 Equity Partners, a Singapore-headquartered global investment firm backed by Temasek, will also subscribe to 18.3% of shares in Tamarind Health through its Local Enterprise Fund. 

As part of its long-term growth strategy, the combined entity may consider the option of a future listing on the Singapore Exchange (OTC:SPXCY ), the companies said.

Source: Investing.com