LYC Healthcare buys three dental clinics for RM3.18 million
KUALA LUMPUR: LYC Healthcare Bhd has offered to acquire three dental clinics in the Klang Valley for a total of RM3.18 million.
LYC said its wholly-owned subsidiary LYC Dental Group Sdn Bhd has entered into a conditional share purchase agreement with Dr. Beh Wee Ren to acquire a 100% stake in KL Dental (Kiara) Sdn Bhd, which owns the 100% of the capital and operates the KL Dental point of sale. at Kiara 163.
It had also entered into a conditional share purchase agreement with Dr. Beh to acquire a 100% stake in KL Dental Sdn Bhd, which owns the entire shareholding and operates the KL Dental outlet in SS15 Courtyard.
LYC has also entered into a conditional share purchase agreement with Dr. Beh and Dr. Andy Ooi Yet Lee to acquire a 100% stake in KL Dental (Connaught) Sdn Bhd, which owns the entire shareholding and operates the KL Dental outlet in Taman Connaught.
The healthcare group said the full consideration for the purchase would be met by a mix of cash and shares of LYC Dental.
He added that the total purchase consideration proposed for the acquisition of RM3.18 million represented a price/earnings (P/E) multiple of 5.8 times, on the overall after-tax profit of RM546,680 of the three dental outlets for 12 months. fiscal year ended December 31, 2021.
“The group believes that dental outlets are strategically located, mostly concentrated in mature neighborhoods, serving residents living in surrounding areas. The three outlets currently have six practicing dentists, who will continue to work after the completion of the
proposed acquisitions,” LYC said in a filing with Bursa Malaysia.
“Once the proposed acquisitions are finalized, LYC Dental’s stake will be 70% by LYC Healthcare and 30% by Dr. Beh, which will align the interests of the group and Dr. Beh in growing the business together,” did he declare. .
The group plans to upgrade and/or improve the three existing outlets upon completion of their proposed acquisitions and explore the possibility of opening additional dental clinics and/or dental medical centers subject to conditions. of the market and the availability of good locations.