PETALING JAYA: TMC Life Sciences Bhd’s parent company in Singapore Thomson Medical Group Ltd (TMG) proposes to distribute its entire stake in its design and engineering and hospitality businesses, held by RSP Holdings Pte Ltd, to its shareholders via a distribution in specie by way of a capital reduction.
TMG told the Singapore Exchange that the proposed distribution will be effected by way of a distribution in specie of RSPH shares on the basis of one RSPH share for every one TMG share held.
TMG also proposed a further capital reduction to streamline its capital structure and write off accumulated losses.
As at Sept 30, 2018, TMG’s issued and paid-up share capital and accumulated losses were S$2.77 billion and S$281.19 million (RM8.3 billion and RM843.57 million), respectively. The further capital reduction will involve a write-off of S$281.19 million in accumulated losses and will concurrently result in the company’s issued and paid-up share capital being reduced by S$281.19 million.
TMG said the corporate exercises are in line with the group’s current focus in developing and growing its healthcare business as well as plans to divest the real estate business.
“It will lead to us becoming a pure healthcare company, and will allow management to focus on capturing the growing demand for quality healthcare in this region,“ said its chairman, Ng Ser Miang.
On Bursa Malaysia today, TMC Life fell 1.3% to 75.5 sen on volume of 43,300 shares. Trading in the stock was delayed by an hour pending the announcement.
