Rowsley will acquirea will acquire Thomson Medical of Singapore

SGX  Mainboard-listed Rowsley Ltd. (“Rowsley”) today entered into a binding AcquisitionAgreementwith Mr. Lim Eng Hock to acquire100%  ofSasteria  Pte  Ltd(“Sasteria”),the owner  of  Thomson MedicalPte  Ltd (“Thomson Medical”)and the  controlling  shareholder  of TMC  Life  SciencesBerhad (“TMCLS”).

Under  the  agreement,  Rowsley will acquirea100%  stake  in  Thomson  Medical, Singapore’s largest  private provider of  healthcare  services  for  women  and  children anda 70.36% stake in TMCLS, a Bursa Malaysia-listed healthcare company with a multi-disciplinary tertiaryhospitaland  leading  provider  of in-vitro  fertilisation  (“IVF”) servicesin Malaysia. Rowsley also intends to change its name to Thomson Medical Group Limited1.

“Post-acquisition,  Rowsley  will  be one  of the  largest  SGX-listed  healthcare  players. Both  Thomson  Medical  and  TMCLS  are  well-positioned  in  their  respective  markets and the purchase of Sasteria gives us an opportunity to participate inafast-growingsector.The   changing   demographics   in   Southeast   Asia   suggest   that   private healthcare  is  poised  fora  sharp  acceleration  in  growth,”  said  Ng  Ser  Miang, Chairman, Rowsley.

The  Purchase  Consideration  of S$1.6  billion  for  Sasteria  will  be  satisfied  through 21.3  billionnew  Rowsley  shares at  the  issue  priceof S$0.075  per  share.Rowsley will also acquire 597,319,140 TMCLS Warrants in cash, each at a price equal to the volume-weighted  average  price  of  TMCLS  Warrants  traded  on  Bursa  Malaysia,for the  one-month  period immediately  preceding  the  date falling  four market days  prior to the date of the Extraordinary General Meeting(“EGM”)to be convened.

The totalconsideration  was  arrived at on  a willing-buyer  willing-sellerbasis  and taking  into accountamongst  othersthe  profitability  of  Thomson  Medical,  TMCLS, their  growth  potential  and  synergies  with Rowsley’sVantage  Bay  Healthcare  City development. 

Both  Thomson  Medical  and  TMCLS  have  plans  to capitaliseon  the  increasing demand for healthcare services in the region. Thomson Medical willcontinue to growbeyond its  current  core obstetrics  and gynaecologyservices into  an  integrated country-wide  healthcare  networkby  expanding  its  current  service  offerings  and opening more new specialist clinics.

In  Malaysia, TMCLS hasplans to  makeits  tertiary  hospital  (“Tropicana  Medical Centre”)  at  Kota  Damansaraone  of  the  largest  integrated  healthcare  campuses  in the Klang Valleyby tripling its current bed capacity. When the new expansion wingis completed and fully operational, the hospital will have a capacity of up to 600 beds, offering comprehensive tertiary healthcare services.

In  addition,  TMCLS  has  plans  to  expand  in  Johor  Bahru  through the  proposed Thomson IskandarMedical  Hub.   Located  in  Vantage  Bay Healthcare  City in  Johor Bahrujust  five  minutes’drive  from  the  Causeway,  Thomson  IskandarMedical  Hub will bean integrated development that comprises a 500-bed tertiary hospital, a 400-suite medical  tower,and  a complementary retailspace.  The tertiary hospital, Hospital  Iskandariah,  will  be  equipped  with  state-of-the-art  facilities  and  equipment,and   will haveseven Centres   ofExcellence   in   cardiology,   diabetes,   fertility, gastroenterology, oncology, orthopaedicsand urology.

Existing Rowsley shareholders will be  offered  two  (2)  Bonus  Warrants  for eachexisting  share.  Each  Bonus  Warrant  has  an  exercise  price  of  S$0.09. For every Bonus  Warrant  exercised, an  additional  warrant  (“Piggyback  Warrant”)  can  be exercised  on  the  basis  of  one  (1)  Piggyback  Warrant  for every  one(1)Bonus Warrant.  Each  Piggyback  Warrant  has  an  exercise  priceofS$0.12  per  share.The Bonus Warrantsand Piggyback Warrants  areexercisable  from  the  date  of  issue of the Bonus Warrants, up to the market day immediately preceding the first and fourth anniversaryof  the  issuance  of  the  Bonus  Warrantsrespectively.  If  all  the  Bonus Warrants and Piggyback Warrants are exercised, Rowsley will receive approximately S$850  million  and  S$1,130  million  of  proceeds  respectively,  which  will  be  usedto fund its future growth and working capital

Among  other  conditions,  the  transaction  is  subject to regulatory approvals,minorityshareholder approvals,and the successful fulfilment of the other conditionsset out in the AcquisitionAgreement.

The EGM is expected to be held in the first quarter of 2018. A shareholder’s circular containing further details of the transaction and enclosing the notice of EGM will be dispatched to shareholdersin due course.

Rowsley has appointed Credit Suisse (Singapore) Limited as its financial adviser in relation to the Proposed Transactions.

About Rowsley Ltd. Listed  on  the  Mainboard  of  the  Singapore  Exchange  since  2002,  Rowsley  Ltd.  is  amultidisciplinary  real  estate  company  with  businesses  in  design  and  engineering, real  estate  development  and  hospitality.  The  Company  ranks  68thin  the  Singapore Governance  and  Transparency  Index  2017. Itsdesign  and  engineering  business includes RSP Architects Planners & Engineers, an established architectural practice with over 60 years of experience, Squire Mech, a leading mechanical and electrical engineering  consultancy,  and  AC  Consortium,  a  market  leader  in  industrial  building design. Rowsley also owns Vantage Bay Healthcare City in Iskandar Malaysia, Hotel Football, Cafe Football, Stock Exchange Hotel, GG Collections and Ariva Hospitality which provide hospitality management services in the UK and Asia respectively

Thomson Medical Pte. Ltd. Since  commencing  operations  in1979,  Thomson  Medical  is  Singapore’s  largestprivate provider of healthcare services for women and children. Thomson Medical is a  wholly-owned  subsidiary  of Sasteria.  It  owns  and  operates  Thomson  Medical Centre,  a  fully  integrated 187-bedprivate  hospital  that  provides  a  comprehensive range   of  facilities  and   services   with   a  focus   on   obstetrics,gynaecology   and paediatric services, as well as a network of 33specialist medical clinics and facilitiesspread  across  Singapore.  Over  the  years,  Thomson  Medical  has  expanded  its operations  to  include  new  areas  of  specialties  and  services  to provide  more  wide-ranging care and services.Thomson Medical will continue to growbeyond its current core obstetrics and gynaecologyservices into an integrated country-wide healthcare network by expanding its current service offerings and opening more new specialist clinics.

TMC Life Sciences Berhad  Listed   on   Bursa   Malaysia,   TMC   LifeSciences   Berhadis   a multi-disciplinary healthcarecompany.   It   operates   mainly   through its   flagship   tertiary   hospital, Tropicana Medical Centre.Located in the fast growingKota Damansara, it is a 205-bed  multi-disciplinary  tertiary hospitalequipped  with advanced  medical  technology and  modern  infrastructure  to  deliver high  quality  and  cost-effectivehealthcare solutions  and  a  superior  service  experience  for  local,  regional  and international patients.TMCLS is planning to expand Tropicana Medical Centreto become one of the largest integrated  healthcare campusesin the Klang  Valley, Malaysia. A  new wingadjacent  to the  current  hospital  that  willaddanother  400  beds  at  the  end  of 2020, has been approved to commence construction. In addition, TMCLS has plans to  expand  in  Johor  Bahru  throughThomson  IskandarMedical  Hub.  Located  in Vantage  Bay Healthcare  City in  Johor  Bahru,  Thomson  IskandarMedical  Hub,  as planned,  entails  anintegrated  development  that  comprises  a  500-bed  hospital, a 400-suite medical  tower and  a complementary retailspace  to  facilitate  and  provide ancillaryservicesto the operation ofthehospital and medical suites.

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