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PETALING JAYA: LYC Healthcare Bhd (LYC) has acquired a majority stake in a medical center in Singapore.
The company, in a filing with Bursa Malaysia today, said the wholly owned subsidiary LYC Medicare Sdn Bhd agreed to pay RM22.27mil for a 51% stake in T&T Medical Group Pte Ltd.
The proposed acquisition, LYC Healthcare said, is expected to improve the group’s profit base during the profit guarantee period.
For the financial year ended December 31, 2019, T&T recorded an income of S $ 4.39 thousand and an after-tax profit of S $ 1.1 thousand.
T&T has provided an aggregate profit guarantee of S $ 3.9 thousand for three financial years ending March 31, 2024.
“As T&T is primarily engaged in the provision of general medical and specialty medical services, particularly in the chronic disease segments, the proposed acquisition would expand the LYC group’s healthcare offering by leveraging T & T’s experience and expertise in the medical field, “he said.
“In addition, the group hopes to reap commercial synergy among its health care subsegments, such as being able to standardize clinical protocols and promote patient referrals.” LYC said.
Under the agreement, LYC Medicare had entered into a conditional sale of shares (SSA) agreement with Ting Choon Meng, a Singapore physician, for the proposed acquisition, which would be fulfilled through a combination of cash worth RM16.2mil and the issue. of 1.99 million non-cumulative preferred shares exchangeable in LYC Medicare, amounting to RM6.07mil.
LYC said it will undertake a fundraising exercise that will involve a private placement of up to 30% of LYC’s total number of issued shares, at an issue price to be determined and announced later.
“Part of the proceeds from the proposed private placement can be channeled to partially or fully finance the acquisition.
Currently, LYC’s healthcare operations are primarily based in Malaysia.
“The proposed acquisition provides the group with the opportunity to expand its geographic reach outside of Malaysia and venture into Singapore’s healthcare sector. This would allow the group to achieve a greater market presence and commercialization of its range of healthcare services that can be offered to local and international clients, “he said.
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