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KUALA LUMPUR, October 5 (Bernama) – 7-Eleven Malaysia Holdings Bhd
(SEM), a 75% -owned subsidiary, Caring Pharmacy Retail Management Sdn Bhd, is contemplating an expansion in the northern region of the peninsula through the proposed acquisitions of equity stakes in retail pharmacies and certain commercial assets.
SEM said Caring today signed several conditional agreements with various suppliers to undertake the proposed acquisitions worth RM48.86 million.
In a joint statement today, SEM and Caring said the latter had signed agreements to acquire 67% of The Pill House Pharmacy Sdn Bhd (TPH) for RM25.51 million and 60% of Wellings Pharmacy Sdn Bhd for RM19.90 millions.
Caring and TPH also signed agreements to purchase certain business assets at three outlets currently held by Farmasi Sri Nibong Sdn Bhd and certain business assets at one outlet currently held by Farmasi Sri Nibong (Pekaka) Sdn Bhd for RM3 million and RM0, 45 million, respectively. .
Based on the Caring group’s pro forma revenue for fiscal year 2019, the proposed acquisitions will increase Caring’s consolidated revenue by approximately 48.8 percent from RM573.25 million to RM852.92 million.
“Caring and its subsidiaries operate a chain of community pharmacies in Malaysia primarily under the ‘CARiNG’ brand through more than 100 stores located primarily in the Klang Valley, Melaka and Johor regions.
“The proposed acquisitions serve as a new growth platform for the Caring group, through which it will expand its commercial presence in the northern part of Malaysia, covering Penang, Kedah and Perlis”, Caring Pharmacy Group Bhd Managing Director Chong Yeow Siang said.
He said the exercise would also allow Caring Group to harness the strength of
The brands and reputation of ‘Georgetown Pharmacy’ and ‘Wellings Pharmacy’ in North Malaysia, and this was expected to contribute positively to the future earnings of the Caring group and consequently to SEM.
The proposed acquisitions are expected to be completed by the end of this year.
Upon completion of the proposed acquisitions, the Caring group pharmacy outlets will increase from 139 to 165, an addition of 26 pharmacy outlets operating under three brands, namely:
Pharmacy, Georgetown Pharmacy and Wellings Pharmacy.
The TPH group is primarily engaged in the retail sale of pharmaceutical, healthcare and personal care products under the ‘Georgetown Pharmacy’ brand through its outlets in the Penang, Kedah and Perlis region of North Malaysia .
Meanwhile, the Wellings group is mainly engaged in the retail sale of pharmaceutical, health and personal care products under the brand name ‘Wellings Pharmacy’ through its outlets in Penang.
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