HMI

HMI - Nam See Investment intends to make a voluntary conditional cash partial offer to acquire 61m shares at $0.16 each (31% premium to the last closing price prior to the offer). The offer price represents a premium of 147% to HMI’s NAV per share of $0.0647, and values HMI at 30.2x FYJun13 P/E. Each shareholder is entitled to accept the offer in respect of at least 18.1% of the shares that he holds. Excess acceptances will be acquired by the offeror, only to the extent necessary to enable the acceptance condition to be satisfied. The offer will turn unconditional if the offeror receives acceptances amounting to 61m shares (~10.6% of shares out). Therefore, on the successful close of the offer, this would lift the combined interest of offeror and concert parties to 52.2%. Thereafter, the offeror can effectively exercise statutory control over HMI, and will be free, subject to a six-month moratorium, to acquire further HMI shares without incurring any obligation to make a general takeover offer for the company. The offeror has no intention to revise the offer price, but reserves the right to do so in a competitive situation. The offeror is owned by Gan See Hem and Chin Koy Nam, who are wife and husband. Gan is the Executive Chairman and Managaing Director of HMI, and Chin is an Executive Director of the company. HMI operates two hospitals in Malaysia – Mahkota Medical Centre in Malacca and Regency Specialist Hospital in Johor.