SINGAPORE, July 19 — Shares of Rowsley Ltd soared 64 per cent today, after the Singaporean real estate firm said it planned to buy healthcare assets from its controlling shareholder, billionaire Peter Lim, in a deal worth up to S$1.9 billion (RM6 billion).

Rowsley, whose businesses are mainly in design and engineering, real estate development and hospitality, will diversify into healthcare through the proposed all-stock deal.

"Healthcare is a big and growing market due to aging demographics, longer lifespan, major trends to increase birth rates, and growing affluence,” Ng Ser Miang, Rowsley’s chairman, said in a statement late on Tuesday.

Rowsley has signed a non-binding term sheet to buy 100 per cent of Singapore hospital operator Thomson Medical Pte Ltd and a 70.36 per cent stake in Malaysia’s TMC Life Sciences Berhad from Lim. It expects to complete a sales and purchase agreement within two months.

Billionaire Lim, the owner of Spanish football club Valencia, has a 45.34 per cent stake in Rowsley. Lim has a fortune worth US$2.1 billion, according to Forbes magazine.

The company will issue new shares at S$0.075 apiece to Lim for the deal. Rowsley is planning a bonus issue of free warrants for its existing shareholders after completing the deal.

"It gives Rowsley a new direction. It could put a new spotlight on the company as a health-sector stock, and health sector stocks have actually always done well,” said trading strategist Nicholas Teo at KGI Securities Singapore.

Shares of Rowsley, which has a market capitalisation of S$540 million, were last trading up 56 per cent at S$0.114. The stock had fallen about 50 per cent over the previous five months. — Reuters