SINGAPORE (Feb 19): Asian Healthcare Specialists (AHS) has acquired a 51% stake in Cornerstone Asia Health (CAH), a provider of healthcare services across various specialisations, for $32.1 million.
In a regulatory filing on Wednesday, the group reported that the consideration was satisfied through the issuance of 104.2 million new consideration shares in AHS priced at 26 cents apiece, as well as $5 million in cash from proceeds of AHS’s initial public offering (IPO) in April 2018.
The consideration shares issued, which constitute some 24.2% of the enlarged share capital of AHS, were substantially issued to the medical specialists and doctors in the Cornerstone Group. These shares are also partially under moratorium, thereby aligning interests of the involved medical specialists and doctors with the shareholders of AHS.
Following the completion of the acquisition, CAH and its subsidiaries have become subsidiaries of AHS, and will form part of the enlarged AHS Group.
AHS says that the acquisition is in line with its growth strategy, and marks another significant significant step towards growing the “Asian Healthcare Specialists” branding and platform, as well as increasing the potential patient base for the group.
The acquisition has resulted in the growth of AHS to a team of 13 medical specialists and doctors, a significant lift from the five orthopaedic specialists it had at the time of its IPO.
AHS CEO Chin Pak Lin says that the ageing population and the increase of chronic diseases have resulted in clinical care becoming more complex and specialised.
“Increasingly, this requires the delivery of healthcare services through a team of cross-disciplinary medical specialists. As teamwork is a cornerstone of delivering the best in patient care, the addition of new specialities and family medicine to AHS will only serve to strengthen our capabilities,” adds Chin.
Shares in Asian Healthcare Specialists closed 0.3 cent higher, or 1.6% up, at 19.4 cents on Wednesday.
