SINGAPORE (July 5): Asian Healthcare Specialists (AHS) has entered into a term sheet to acquire a 51% stake in Cornerstone Asia Health (CAH).
CAH specialises in the provision of multidisciplinary healthcare services across different specialisations, offering key services in ophthalmology, urology, dermatology and gastroenterology as well as family medicine.
Both AHS and CAH are set to discuss further before entering into definitive agreements.
At the moment, the consideration payable for the proposed acquisition is expected to be 13 times of CAH’s profit after tax for FY2019.
This could be satisfied by newly issued ordinary shares in the share capital of AHS at $0.26 per share, and a cash amount of $5 million, full details of which will be set out in the definitive agreements.
For the six months ended March 31, AHS posted a 4.2% decline in earnings to $1.38 million, from a year ago as a rise in staff costs outpaced revenue growth. Revenue for the half year grew 5.2% to $5.94 million, mainly due to the acquisition of an anaesthesia arm in November.
Shares in AHS last traded at $0.26 on Thursday.
