The purchase price of the Pain Care Group is too low. The Securities Investment Association promotes shareholders not to act in a hurry.

Pain Care Group received a proposal from medical service management consulting company Advance Bridge Healthcare last Wednesday (May 28) to privatize the group through an agreement, with the acquisition price of RMB 0.16 per share.

CITIC: The value of each share is 0.36 yuan to 0.37 yuan

SFC further pointed out that as of December 31, 2019, after adjusting the equity capital after the allotment and the proceeds from the company's allotment, the group's net asset value (NAV) was approximately RMB 0.0986, which is as high as 123% compared with the initial public offering (IPO) price.

If the offer price is raised, shareholders cannot get the difference The statement also mentioned that in the past, some shareholders sold their shares in the open market to earn meager profits before independent financial advisers issued their opinions.

As of 3:20 pm on Wednesday, the share price of Pain Care Group rose 1.30% to 0.16 yuan.

President of the Securities Investment Association David Gerald pointed out in a statement that the Pain Care Group was listed at a price of RMB 0.22 per share in July 2020. It was the time of the COVID-19 pandemic, and the valuation was sluggish, with the Straits Times index of about 2,500 points. Now that the Haixin Index has risen to 3,900 points, the group hopes to delist at a price of 0.16 yuan per share.

SEC emphasized that since the transaction is arranged through an agreement, it is necessary to obtain more than 50% of the votes at the meeting and obtain support from the voter shareholders with a shareholding ratio of more than 75% to be approved.

Singapore Securities Investors Association (SIAS) believes that Singapore Paincare Holdings' acquisition price per share should be between RMB 0.36 and RMB 0.37, and advises shareholders to wait for the report of the Independent Financial Advisor (IFA) before deciding whether to accept the acquisition offer.

Jeller reminded: "If the offer price is raised after the increase, shareholders who have sold the shares will not be able to recover the difference. Therefore, we recommend that shareholders wait for the opinions of independent financial advisers."

Jeller said: "As of December 31, 2024, the group's unaudited net assets were RMB 0.163 per share. If calculated based on the original premium, the acquisition price should be between RMB 0.36 and RMB 0.37, and the price of the offer proposed in the agreement arrangement is too low."

The Securities Investment Association also reminds all offerors to treat shareholders fairly and not forget the promises made during the initial public offering, and to make fair and reasonable offers when delisting.

He noted that well-managed healthcare companies usually trade at a premium above their net worth. If delisting is to be delisted, the independent financial adviser must consider the relevant quotation "fair and reasonable".