Property and retail company Metro Holdings is investing $6 million for a 10% stake in digital health platform DocMed Technology, valuing this subsidiary of Hyphens Pharma International at $60 million.
As part of the transaction, Hyphens Pharma will be conducting a restructuring exercise to transfer its shareholding of Pan-Malayan Pharmaceuticals to be a wholly-owned subsidiary of DocMed. The enlarged entity is headed by Timothy Chen.
Upon completion of the transaction, Hyphens Pharma will see its interest in DocMed diluted from 100% to 89.76%, or worth $53.86 million based on Metro’s investment. Besides Metro's 10%, the remaining 0.24% is held by Chen, who has signalled his commitment by taking this stake for $100,000. Hyphens Pharma has a market value of just over $88 million.
According to Hyphens Pharma, the investment by Metro helps “unlock” the value of its so-called medical hypermart and digital business segment, which includes its wholesale business of drugs and medical supplies.
“DocMed can leverage on Metro’s regional presence to bring the business to the next level,” says Hyphens Pharma’s executive chairman and CEO Lim See Wah.
“DocMed is focusing on capturing opportunities in healthcare digitalisation and developing new digital assets. We anticipate a bright future for this business,” he adds.
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in the digital evolution of healthcare in the region and that there are mutual synergies for both parties.
“We see growth opportunities in the digital evolution of healthcare in the region and are pleased to collaborate with Hyphens Pharma, which is an established partner in the healthcare industry,” says Yip Hoong Mun, Metro’s group CEO and executive director.
“There are synergies for both parties to capture opportunities in Singapore and the region,” he adds.
Hyphens Pharma shares last traded at 29 cents.
