[ad_1]
KUALA LUMPUR (Oct 5): Caring Pharmacy Retail Management Sdn Bhd, a 75% -owned unit of 7-Eleven Malaysia Holdings Bhd (SEM), is acquiring equity interests and commercial assets in various pharmaceutical outlets for a Combined cash consideration of RM 48.86 million.
Caring signed several conditional sales agreements with various vendors for the proposed acquisitions today, SEM and Caring said in a joint statement.
These include a 67% stake in The Pill House Pharmacy Sdn Bhd for RM25.51 million and a 60% stake in Wellings Pharmacy Sdn Bhd for RM19.9 million.
Caring is also purchasing certain commercial assets at three outlets currently held by Farmasi Sri Nibong Sdn Bhd for RM3 million, as well as at Farmasi Sri Nibong (Pekaka) Sdn Bhd for RM450,000.
The Pill House group is primarily engaged in the retail sale of pharmaceutical, healthcare and personal care products under the “Georgetown Pharmacy” brand through its outlets in Penang, Kedah and Perlis.
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.
The acquisitions, which are expected to be completed by the end of 2020, will add 26 more pharmacies under the Caring group, to 165 out of 139, according to the statement.
The outlets will operate under three brand names, namely Caring Pharmacy, Georgetown Pharmacy and Wellings Pharmacy, it said.
“Based on the Caring group’s pro forma revenues for fiscal year 2019, the proposed acquisitions will increase Caring’s consolidated revenues by approximately 48.8% from RM573.25 million to RM852.92 million,” he added.
Chong Yeow Siang, Managing Director of Caring Pharmacy Group Bhd, said: “Caring and its subsidiaries operate a chain of community pharmacies in Malaysia primarily under the brand name” CARiNG “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.”
He added: “The proposed acquisitions will enable the Caring group to leverage the strength of the Georgetown Pharmacy and Wellings Pharmacy brands and reputation in North Malaysia, and this is expected to contribute positively to the future earnings of the Caring group and consequently of the SEM group “. . “
Shares of 7-Eleven closed one sen or 0.76% higher at RM1.33, valuing the group at RM1.64 billion.
[ad_2]
