PETALING JAYA: Bintai Kinden Corp Bhd has signed a memorandum of understanding (MoU) to acquire Johnson Medical International Sdn Bhd in a bid to expand its healthcare business.
In a statement yesterday, the company said it has signed the MoU with a vendor Yeo Eng Lam (pic) to acquire three million ordinary shares, representing 100% equity interest in Johnson Medical for RM50mil.
Bintai Kinden said the proposed acquisition would be satisfied via a combination of cash amounting to RM26mil and the issuance of approximately 58.54 million new ordinary shares in Bintai Kinden at 41 sen apiece.
Established in 1994, Johnson Medical is a medical engineering solutions provider focused on the manufacturing, supply and installation of operating theaters, critical care units and medical gas delivery systems and trading of medical equipment and supplies.
Bintai Kinden vice-chairman Ibrahim Othman said the proposed acquisition presents a strategic opportunity for the company to expand inorganically.
“The corporate exercise will also enable the company to expand its products and services offering in addition to its current distribution of Greenie Medi Cold Chain Box designed for storage and distribution of Covid-19 vaccine under its healthcare business segment, ”
“It will allow Bintai Kinden to tap into the healthcare segment to supply and install various medical devices such as medical pendants, mobile and modular healthcare units, bedhead panels, mobile surgical units and trauma workstation to capture the demand for healthcare business as a result of the Covid-19 pandemic, ” he added.
Under the MOU, Bintai Kinden said the vendor will provide a profit guarantee of RM3.50mil and RM5.60mil for the financial year ending December 31,2021 (FY21) and FY22, respectively.
“Barring any unforeseen circumstances, the corporate exercise is expected to contribute positively to the future earnings and improve the financial position of the Bintai Kinden, ” Ibrahim said.