SINGAPORE (Dec 18): Shares of Rowsley jumped 22.5%, or 2.5 cents, to close at 13.6 cents on Monday after the real estate and investment firm announced it is acquiring $1.6 billion worth of healthcare assets from controlling shareholder Peter Lim Eng Hock.

Rowsley on Monday entered into a sale and purchase agreement to acquire 100% of Sasteria from billionaire former stockbroker Lim.

Sasteria is the owner of Thomson Medical and the controlling shareholder of Malaysia-based TMC Life Sciences (TMCLS) with a 70.36% stake.

See: Rowsley to acquire $1.6 bil worth of healthcare assets from Peter Lim; to be renamed Thomson Medical Group

Post-acquisition, Rowsley will change its name to Thomson Medical Group. In addition, healthcare will become the group’s main business, according to chairman Ng Ser Miang.

The acquisition will see Rowsley transform into “one of the largest SGX-listed healthcare players,” says Ng. The group will leapfrog over Raffles Medical Group and Indonesia’s largest private healthcare group, Siloam Hospitals, in terms of market capitalisation.

The announcement triggered a flurry of activity in the market after the trading halt was lifted at noon. Some 305.8 million Rowsley shares changed hands, placing it as the most traded stock on SGX on Monday.

The proposed acquisition will be funded through the issuance of 21.3 billion new shares of Rowsley to Lim at 7.5 cents each.

In July, Rowsley shares had surged 57.5% to 11.5 cents after the group announced it will pay $1.9 billion for Sasteria, by issuing 25.3 billion new shares at 7.5 cents each.

See: Rowsley shares up some 58% on deal to buy healthcare assets for $1.9 bil

Rowsley CEO Tan Wee Tuck says the consideration has dropped from $1.9 billion to $1.6 billion because some additional acquisitions “did not take place in time for us to close it this time around.”

“It’s not appropriate for us to share what targets we are going after, simply because they are commercially sensitive and those deals are being kept alive,” says Tan.