Healthway Medical

Healthway Medical (HMC): Group's 10.62% stake in International Healthway Corp (IHC) has lodged its preliminary offer document on the Catalist on 31 May after-market. IHC is an integrated healthcare services and facilities provider, provides healthcare services through the development, investment and management of medical real estate, healthcare-related assets and integrated mixed-use developments. IHC has 15 assets in its initial portfolio, with three in its construction phase: - an integrated mixed-use development with specialised medical suites, retail space and service residences located in Malaysia to be developed by 2016; - two hospitals in Wuxi and Chengdu province in China; - 12 nursing facilities in Japan; Asset portfolio has four pending projects and three in the pipeline. The spin-off will see HMC retain its focus on its clinic networks, and has given an undertaking to divest its entire 10.62% stake in IHC within one year of its proposed listing. Current HMC shareholders will be given a special dividend in the form of IHC shares. As part of the listing process, IHC was incorporated as the listing vehicle in place of HMD and a restructuring exercise has taken place. Accordingly, HMC shareholders will receive IHC shares. Further details are required following the announcement of the corporate exercise for HMC. The medical and specialist care services company trades at 31.7x historical P/E and 1.1x P/B based on its last closing price of $0.108.