KUALA LUMPUR: Loss making Mexter Technology Bhd has proposed a new name for the company to reflect its expanding business in the healthcare industry.
Mexter, in a filing with Bursa Malaysia on Tuesday, said a 70% owned subsidiary LYC Living Sdn Bhd has entered into a conditional consultancy and project management agreement with LYC Venture Sdn Bhd for the development of a RM558mil wellness centre in Bentong, Pahang.
“The expansion of the group’s business pursuant to the proposed diversification is part of the group’s long term strategy to further expand into the healthcare industry after having considered the potential earnings from LYC Wellness Valley’s project services and other related services,” Mexter said.
Under the agreement, LYC Venture will pay LYC Living a sum equal to 8% of the sales proceeds to be derived from the sales of properties within LYC Wellness Valley on a progress billing basis.
Prior to the issuance of the said progress billing, LYC Venture will pay LYC Living a fixed sum of RM100,000 a month.
Mexter said work on the proposed RM558mil LYC Wellness Valley project, located on a 23.9 acres site at the foothill of Genting Highlands, is expected to start early next year.
LYC Venture is the owner of the LYC Wellness Valley project. The proposed development of LYC Wellness Valley is expected to be carried out over a period of six years.
Mexter ventured into the healthcare business in 2017 by providing mother and childcare related services such as postnatal and postpartum care, postdelivery confinement care, child specialist and family clinic and aesthetics. In May this year. Mexter has proposed to set up retirement homes in Kuala Lumpur that can accommodate a total of 70 beds.
Mexter said the deal LYC Venture on Tuesday is expected to contribute more than 25% of group’s total profit in the future. The company said it is planning to seek shareholders' approval to change its name to LYC Healthcare Bhd.