Bintai Kinden rises 4.3% on healthcare business expansion plan

KUALA LUMPUR: Shares in Bintai Kinden Corp Bhd rose in active trade in early trade Tuesday on news of its healthcare business expansion.

The counter rose 4.35%, or two sen to 48 sen, its highest in a month with 42.3 million shares done.

Bintai Kinden will acquire Johnson Medical International Sdn Bhd (JMI) for RM50mil to expand its healthcare business segment.

The company said it plans to settle the purchase by paying RM26mil cash and and the issuance of 58.6 million new Bintai Kinden shares at 41 sen each to the seller - Yeo Eng Lam.

Bintai Kinden has signed a memorandum of understanding (MoU) with Yeo to acquire a 100% equity interest in JMI.

Under the MoU, Yeo will provide Bintai Kinden with a profit guarantee of RM3.50mil and RM5.60mil for the financial year (FY) ending 31 December 2021 and FY22 respectively.

Barring any unforeseen circumstances, the corporate exercise is expected to contribute positively to future earnings and improve the financial position of Bintai Kinden.

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