“Remiser King” Peter Lim, who was made more famous after bidding to buy over Liverpool, has offered $1.75 a share to buy over Dr Cheng Wei Chen and family’s 39.34% stake in Thomson Medical Centre. Dr Cheng is the founder and largest shareholder of TMC. The offer price is at a 62% premium over the last traded price of TMC. The cash offer will be extended to all the remaining issued shares and when 50% or more of the remaining shares are agreeable to be sold, the shareholders will get $1750 per lot. Owners of TMC will receive a offer letter no earlier than 14 days and no later than 21 days.
I believe Peter Lim has been eyeing TMC for some time and with the stellar FY2010 performance (I will be analysing FY2010 results in another post), it gives him added impetus to be the largest shareholder of TMC. At $1.75, TMC P/E will be at 32.3. Current P/E is at 19.9. Peter Lim might even buy over the whole company and de-list TMC. I’m actually not willing to let go of TMC, even at $1.75, as I feel that it has potential to grow even further. But then again, if Peter Lim decides to buy over the whole company, I would have no choice but to sell my stake. Looking forward to Monday opening to see how the market will react to this news. I believe the share price of TMC will skyrocket on Monday.