SINGAPORE (Sept 3): HC Surgical will acquire an additional 19% stake in Julian Ong Endoscopy & Surgery (JOES) for $3.8 million from seller Julian Ong Surgery.
The latest acquisition will bring its entire stake in JOES to 70%, making it a subsidiary of the group.
HC Surgical will fund the acquisition via the issuance of 1.76 million new HC Surgical shares at 53.88 cents each and with $2.8 million in cash.
HC Surgical says the acquisition is in line with the group’s long-term plans for growth, and will motivate Dr Julian Ong, having started his employment with the group since Apr 1, 2017, to further improve the profitability of JOES.
In addition, HC Surgical will also be entering into a separate sale and purchase agreement to acquire the remaining 30% stake in JOES from vendors Julian Ong Surgery and Ong at a later stage, with completion of this proposed acquisition to occur by Oct 31, 2021. The consideration will be 10 times the audited profit after tax of JOES for the financial year ending May 31, 2021, multiplied by 0.3.
Heah Sieu Min, CEO of HC Surgical, says, “Dr Ong is a talented specialist who has proven to be very popular with patients. We are excited to be part of his growth journey as we fortify our relationship with Dr Ong through this acquisition. We will continue to execute on our corporate strategy in looking out for young talented specialists like Dr Ong, providing them with the necessary support and platform for growth.”
Shares in HC Surgical closed at 56 cents on Tuesday.
