Shares of Singapore’s Raffles Medical Group (RAFG.SI) rose as much as 9% on Monday, as investor sentiment in the healthcare sector got a boost after a Singapore investor made a takeover offer for Thomson Medical Centre (THOM.SI). 

At 0223 GMT, Raffles Medical shares were up 6.9% at $2.33 with over one million shares changing hands.

 

Singapore billionaire Peter Lim on Friday struck a deal with Thomson Medical’s founding family to buy their 39.34% stake in the company and will make an offer for the rest of the firm, valuing the firm at $513 million. 

 

“This is mostly a spillover effect from Peter Lim’s takeover of Thomson Medical, which has also spurred expectations other healthcare firms may also receive takeover bids,” said a local trader.

 

He added that Raffles Medical has a large presence in Singapore, which makes it a good takeover target for investors or firms hoping to gain exposure to the city-state’s healthcare sector.

 

Shares of smaller rival Healthway Medical (HEMC.SI) also outperformed the broader market, rising 6.7% to $0.16 at 0234 GMT.