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Singapore's Thomson Medical to spin off real estate business

Thomson Medical Group Ltd said it will spin off its real estate assets to focus on its healthcare business.

The move will allow Thomson Medical to attract investors who prefer a pure healthcare company, leading to a wider investor base and improved liquidity, Chairman Ng Ser Miang said.

Singapore-based Thomson Medical's real estate unit, comprising design and engineering as well as hospitality businesses, will be restructured under its unit, RSP Holdings Pte. Ltd.

The real estate assets will be spun off as is to existing shareholders by decreasing the company's equity, without any sale of assets to a third party. Under the spinoff, company shareholders will receive RSP Holdings shares. Thomson Medical will not hold any shares in the newly created real estate company.

Thomson Medical will also provide minority shareholders the option of exiting the company by receiving cash instead of RSP Holdings shares. The company will appoint an independent financial adviser to provide a fairness opinion regarding the cash alternative.

Thomson Medical shareholders are expected to vote on the proposal at its Dec. 4 extraordinary general meeting.

Primepartners Corporate Finance Pte. Ltd is acting as financial adviser to the company for the transaction.

Separately, Thomson unit Rowsley (Stox) Pte. Ltd. closed the sale of a 50% stake in U.K.-based real estate company Finestday Ltd. to Relentless Stox Investments Ltd., majority-controlled by Gary Neville.

Total consideration for the deal is £3.2 million, comprising £1.2 million for the sale of 1,200,000 issued and fully paid D ordinary shares of Finestday, priced £1.00 each, and £2 million for the assignment of a loan.

Thomson Medical's healthcare business includes Thomson Medical, a private provider of healthcare services for women and children, and TMC Life Sciences Berhad, a healthcare company listed in Malaysia.