Raffles Medical reveals plans to sell Thong Sia building for $118–120m in cash

Here are 2 possible sale approaches.

According to Nomura, the group has announced that it plans to sell Thong Sia building to Mr. Kishore Kumar Jaikishin Buxani for S$118–120mn in cash. Book value as at end-FY12 stands at S$98mn. Net gain in the P&L will be S$19.4mn – S$21.4mn according to management.

Based on the cash consideration received, the accretion from this transaction is ~4$cent.

Here's more from Nomura:

Approach 1: Sale of Shares in RMM. The preferred mode of sale is to sell the shares of Raffles Medical Management (RMM) – the entity which holds Thong Sia Building – to the buyer. The property valuation and cash consideration in this instance is agreed at S$120mn.

The net gain in the P&L will be ~S$21.4mn under this approach, according to management.

Approach 2: Sale of Building. If a Sale & Purchase Agreement is not executed within 14 days from 12 Aug 2013, or such later date as mutually agreed, the company will proceed to sell Thong Sia Building directly (instead of a sale of shares of RMM) to the buyer.

In this instance, the property valuation and cash consideration is S$118mn. The net gain in the P&L will be ~S$19.4mn under this approach, according to management.

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