IHC: (S$0.315) Under probe for possible share rigging
SGX has advised caution against trading in shares of International Healthway Corp (IHC), after a review of trades showed that a handful of connected individuals accounted for over 60% of trades done since Apr '15.
Share price of IHC has been locked within a tight range between $0.29 and $0.32 for the past five months, seemingly unaffected by the market turbulence during the past few weeks.
The exchange working with other regulatory agencies to investigate the matter.
To recap, IHC proposed to acquire Healthway Medical Corp (HMC) in Jun through a share swap deal worth $231m.
Shareholders of HMC will receive 2 new IHC shares priced at $0.45 each, for every 9 HMC shares (valued at $0.10) held. Subsequently, HMC will be delisted, and become a fully-owned subsidiary of IHC.
The transaction is subject to court and shareholder approval and raises the question how IHC derived its $0.45 pricing, and the extent to which IHC's share price has been artificially inflated.
IHC called for a trading halt just before market opened today.