HC Surgical Specialists (HCSS) will be acquiring the remaining 49% stake in Jason Lim Endoscopy and Surgery (JLES) for $9 million.
Upon completion of the acquisition, HCSS will own 100% of JLES.
The acquisition is in line with the group’s long-term plans for growth, and will continue to enhance the working relationship with Dr Lim as well as motivate Dr Lim, having commenced his employment with the group since Aug 13, 2018, to further improve the profitability of JLES.
The total purchase consideration of $9.06 million will be satisfied in the form of 80% cash payable over a period of two years and 20% shares in the share capital of the company, which will be issued two years later, at an issue price based on the volume weighted average price of the company's shares for the full market day on the day immediately prior to the issuance.
Based on the unaudited accounted of JLES for its 12 months ended May 31, 2021, profit before tas was about $1.5 million, while the net tangible asset came in at $1.3 million and net asset value stood at $1.3 million.
CEO of HCSS, Dr Heah Sieu Min says: “Dr Lim is a talented specialist who has proven to be very popular with patients, and is a fast learner in terms of growing his business and management skills. We are excited to be part of his growth journey as we fortify our relationship with Dr Lim through this acquisition. We will continue to execute on our corporate strategy in looking out for young talented specialists like Dr Lim, providing them with the necessary support and platform for growth.”
Shares in HCSS closed at 51 cents on Aug 23.
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