Mexter to diversify into healthcare services

Newborn baby holding mothers hand

KUALA LUMPUR: Information technology (IT) services provider Mexter Technology Bhd is eyeing to diversify into healthcare services following the emergence of a new substantial shareholder last year.

The company, which provides mobile, computing and electronic services, told Bursa Malaysia that it planned, for a start, to venture into the mother and child healthcare segment by setting up a postpartum care centre in Taman Tun Dr Ismail, Kuala Lumpur, with a capacity of about 33 beds.

“The care centre would initially offer services such as postnatal and postpartum care, post-delivery confinement care and aesthetics but may subsequently be extended to offer services such as paediatrics and fertility management,” it said.

Mexter said its board expected the venture into healthcare services might potentially contribute more than 25% of the group’s net profits and/or net assets.

“The healthcare industry is a comparatively stable market which is anticipated to compensate for business cycle fluctuations,” said the company whose core businesses were in IT-based solutions and services.

In May last year, hospital group HSC Heathcare Sdn Bhd co-founder Lim Yin Chow bought 55.8 million shares in Mexter through his vehicle LYC Capital Sdn Bhd, making him the largest shareholder with a 28.38% stake.

Mexter also proposed to undertake a private placement to independent investors of up to 20% of its share capital at a price to be determined later.

Based on an indicative issue price of 25 sen per share, the proposed placement would raise between RM10mil and RM14.3mil, of which RM6mil would be allocated to renovate the care centre, to be located at Plaza VADS under a three-year tenancy term.

The Mexter board believes the group has the capacity, capabilities and resources to diversify into healthcare services after taking into consideration the impending appointment of Dr Cheng Chih-Chien as operations administration consultant and the business acumen of the group’s directors and major shareholder.

Cheng, 49, is currently attached to the Department of Obstetrics & Gynaecology of Taipei City Hospital.

Mexter said its board expected the proposals to be completed by the third quarter of 2017.
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