Healthway Medical Corporation

[weijian]

@Moderator

I noticed there are two threads on the company. One is this thread, and one older thread below. I suggest to merge them.

https://www.valuebuddies.com/thread-1109-page-2.html

Hi YMPL,
thanks for doing your part in housekeeping. Have done so accordingly. Appreciate your efforts.

[YMPL]

It is logical to extend the offer till last day. The official announcement said "will make", rather than "making" as reported, which is more appropriate, since no confirmation on T2 CB yet.

What if the EGM is dragged after the 60-days final GO timeline, which should be May 2? It is to the advantage of GW, but not to the rest. The management has no valid reason to drag, IMHO.

Takeover offer for Healthway Medical by Lippo-linked Gentle Care extended to May 2

In a Singapore Exchange filing at 9.08pm, Gentle Care also announced it is making an offer to acquire Gateway Partners’ $70 million convertible notes, which are convertible into new shares at a price of 3.384 cents per share.

http://www.theedgemarkets.com.sg/article...nded-may-2

"will be making an appropriate offer to GW Active Limited"
http://infopub.sgx.com/FileOpen/Extensio...eID=444847

[YMPL]

The Gateway is a PE house, which has no mandate to take over controlling of vested companies. Will the waiver, ease the concern on massive dilution?

Gateway denies intention to make a general offer to buy out Healthway Medical

By:
Michelle Zhu
03/04/17, 09:58 pm
SINGAPORE (April 3): GW Active, which is owned by Gateway Fund 1 of private equity firm Gateway Partners, has issued a statement to clarify that it does not intend to make a general offer to buy out Healthway Medical Corporation.
http://www.theedgemarkets.com.sg/article...ay-medical

The official announcement on the matter below
http://infopub.sgx.com/FileOpen/GW_SGX_a...eID=446046

[weijian]

The Gateway is a PE house, which has no mandate to take over controlling of vested companies. Will the waiver, ease the concern on massive dilution?

Any reason why you would mention Gateway or PE (in general) have no mandate to take over controlling of vested companies?

[YMPL]

The Gateway is a PE house, which has no mandate to take over controlling of vested companies. Will the waiver, ease the concern on massive dilution?

Any reason why you would mention Gateway or PE (in general) have no mandate to take over controlling of vested companies?

Gateway is a PE house with OPM. In general, PEs invest as passive shareholders, rather than active ones, similarly as KKR and Blackstone.

[weijian]

The Gateway is a PE house, which has no mandate to take over controlling of vested companies. Will the waiver, ease the concern on massive dilution?

Any reason why you would mention Gateway or PE (in general) have no mandate to take over controlling of vested companies?

Gateway is a PE house with OPM. In general, PEs invest as passive shareholders, rather than active ones, similarly as KKR and Blackstone.

Well, i am no Private Equity customer but if they invest passively like an average OPMI like me, they wouldn't be an asset class themselves

Here’s what happens when 3G Capital buys your company
http://fortune.com/2015/03/25/3g-capital...t-buffett/

The Biggest Private Equity Buyouts in History
http://www.businessinsider.com/the-bigge...15-hertz-1

Definition of private equity on Investopedia:
Private equity is capital that is not noted on a public exchange. Private equity is composed of funds and investors that directly invest in private companies, or that engage in buyouts of public companies, resulting in the delisting of public equity

[YMPL]

Shareholders of the company are playing the wait-and-see game. I reckon there is no significant acceptance on Lippo's offer, before the EGM. Gateway's move is damaging if the aim is to get the 2nd trance approved. Probably a good selling price before EGM, to allow new owners to influence the EGM. I wish Gateway is savvy to ensure "true" independence of the buyer.

-----
Gateway's sale of Healthway Medical notes to third parties raises eyebrows
http://www.businesstimes.com.sg/companie...s-eyebrows

[YMPL]

Gateway got it.

---
Healthway Medical shareholders vote in favour of both resolutions
SINGAPORE (April 21): Shareholders of Healthway Medical Corporation showed strong support for the two resolutions tabled at the Extraordinary General Meeting today.

In the first resolution voted, nearly 1.3 billion votes or 95.20% of total votes supported the proposed $60 million convertible notes to be issued to GW Active, a wholly-owned subsidiary of Gateway Fund I L.P., a fund managed by Gateway Partners.
...
http://www.theedgemarkets.com.sg/healthw...esolutions

[YMPL]

Gateway Partners had flipped the $15 million notes, for a gross profit of 27%. The remaining $45 million, after conversion, will be slightly less than 30% mark of the enlarged share base of the total $70 million notes.

What a deal for Gateway Partners!

Lippo's Gentle Care in deal to buy S$15m of Gateway's S$60m convertible notes
24 Apr 2017 08:42
By Chai Hung Yin

LIPPO-LINKED Gentle Care has made an official cash offer to acquire all of Gateway Partners' S$60 million convertible notes at S$0.042 per share, in line with its intent as stated in previous announcements.

Gentle Care has also entered into a sale and purchase agreement to buy S$15 million of the S$60 million notes, the company said in Singapore Exchange filings on Sunday night.
...
Source: Business Times Breaking News

[YMPL]

Lippo converted the $15 million worth of notes promptly. Both GW and Lippo are the winners, at the expense of the company shareholders.

http://infopub.sgx.com/FileOpen/Conversi...eID=449849