Investment firm TPG is offering to take Singapore-listed healthcare company Econ Healthcare private in an S$88m (€63m) deal.
TPG, through its special purpose vehicle Enabler BidCo, is offering to acquire all shares of Econ via a scheme of arrangement at S$0.33 per share, or a combination of cash and shares in HoldCo, a TPG fund-owned vehicle.
Econ, established in 1987, operates 10 hospitals in Singapore and Malaysia. It recently opened its first nursing home in China.
Both TPG and Econ agreed that significant capital investment is needed for the company to grow and compete effectively in the aged care sector, particularly for capital expenditures, strategic investments and acquisitions in Singapore and Malaysia.
“If the company remains listed at its current scale, raising capital successfully through rights issues or private placements may take time and may be dependent on market conditions and investor appetite,” Econ said.
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