PETALING JAYA: Sunway Bhd’s wholly-owned subsidiary, Sunway City Sdn Bhd (SunCity), is disposing of shares in 10 medical-related companies for RM683.36mil as part of its reorganisation exercise.
In a filing with Bursa Malaysia, Sunway said SunCity had entered into a share purchase agreement with Sunway Healthcare Holdings Sdn Bhd (SHH), a wholly-owned subsidiary of SunCity, for the disposal of the companies.
Sunway said the RM683.36mil will be fully satisfied by the allotment and issuance of 489,269,588 ordinary shares at an issue price of RM1.3967 per share in the share capital of SHH to SunCity.
An analyst said it would make sense to park all of the medical-related companies under SHH, which is primarily involved in the healthcare business.
“The reorganisation under SHH will mean more efficient execution of processes when it comes to the companies’ staff, products and services and even marketing strategies, ” he said.
Sunway said the companies to be disposed of by SunCity are Paradigm Fairview Sdn Bhd, Platinum Greenway Sdn Bhd, Sunway Iskandar Medical Centre Sdn Bhd, Sunway Medical Centre (Singapore) Pte Ltd, Sunway Medical Centre Ipoh Sdn Bhd, Sunway Medical Centre Kota Bharu Sdn Bhd, Sunway Medical Centre Sdn Bhd, Sunway Specialist Centre Sdn Bhd, SunMed Velocity Sdn Bhd and Sunway Senior Living.
Seven of the companies’ primary businesses include the operation of a medical centre, while the remaining three are focused on the provision of medical consultation services and facilities services, outpatient care services and the provision of facilities and services for persons in need of senior living care and assistance.
Upon the completion of the reorganisation exercise, Sunway said the companies will become direct subsidiaries of SHH.
“The reorganisation exercise will not have any effect on the issued share capital of Sunway and substantial shareholders’ shareholdings as it does not involve any issuance of new shares of Sunway and will not have any material effect on the earnings, net assets and gearing of Sunway on a consolidated basis.
“None of the directors or major shareholders of Sunway or persons connected with them has any interest, whether direct or indirect in the reorganisation exercise, ” it said.
Sunway Bhd’s net profit for its fourth quarter ended Dec 31,2020, rose 5% to RM193.07mil from RM183.47mil in the previous corresponding period, mainly due to recognition of a balance of development profits of RM182.50mil.
Revenue in the fourth quarter, meanwhile declined 6% to RM1.28bil from RM1.35bil a year earlier, mainly due to lower contribution from the group’s property development, property investment and quarry segments.
For its financial year ended Dec 31,2020, Sunway’s net profit dropped to RM359.6mil from RM709.17mil in the previous corresponding period, while revenue fell 20% to RM3.83bil from RM4.78bil a year earlier.