OPH

OPH: Do note that details may not be finalized and there is no guarantee the transaction will be carried out. 1st part Co will engage in an asset-swap with Far East Org, exchanging a 35% stake in Yeo Hiap Seng for healthcare assets (45 medical suites in Novena Med Centre, 48 suites in Novena Spec Centre) and entire hospitality mgmt business of Far East Org though not the hotel assets themselves. The divestment of Yeo Hiap Seng will be at a 40.6% premium to its last traded with balance to be settled in cash. 2nd part Co will inject 3 hospitality assets Orchard Parade Hotel, Alber Court Village Hotel and Central Square Village Residences into a REIT and receive at least $702m. Co will not own the REIT but will own 33% of the REIT/Business Trust manager. Net proceeds of $233m out of $702m are expected after paying off debt on the 3 assets, consideration for the 1st part (asset swap), special div of 12c and fees. Far East Org will own 50% of the REIT/Biz Trust Note the difference between the manager and the REIT/biz trust. 3rd part Shareholders will also receive a proposed dividend $0.12 0.229 YHS shares per OPH share (out of remaining 14.5% of YHS shares) What shareholders will be holding on after the transaction will be 1. Healthcare assets 2. Entire hospitality mgmt business of Far East Org (Includes managing 8 operating hotels and 10 serviced residences) 3. Co’s investment properties includes Tanglin Shopping Centre, commercial units in Albert Court and Central Square 4. Co’s development projects, Floridian, EUhabitat 5. Any remaining assets on its balance sheet. Co currently trades at P/B of 0.6x. Co has stated that it will use the net proceeds for working capital and likely for participating of property tenders and to develop its hospitality and healthcare assets.