KUALA LUMPUR: LYC Healthcare Bhd has proposed to acquire three dental clinics in Klang Valley for a total of RM3.18mil.
LYC said its wholly-owned subsidiary LYC Dental Group Sdn Bhd had entered into a conditional share purchase agreement with Dr Beh Wee Ren to acquire 100% shareholding in KL Dental (Kiara) Sdn Bhd which owns the entire equity ownership and operates the KL Dental outlet in Kiara 163.
It had also entered into a conditional share purchase agreement with Dr Beh to acquire 100% shareholding in KL Dental Sdn Bhd which owns the entire equity ownership and operates the KL Dental outlet in SS15 Courtyard.
LYC also entered into a conditional share purchase agreement with Dr Beh and Dr Andy Ooi Yet Lee to acquire 100% shareholding in KL Dental (Connaught) Sdn Bhd which owns the entire equity ownership and operates the KL Dental outlet in Taman Connaught.
The healthcare group said the total purchase consideration would be satisfied in a mixture of cash and shares in LYC Dental.
It added that the proposed acquisition total purchase consideration of RM3.18mil represented a price-to-earning (P/E) multiple of 5.8 times, over the aggregate profit after tax of RM546,680 of the three dental outlets for the 12-month financial period ended Dec 31, 2021.
“The group believes the dental outlets to be strategically located, mainly concentrated in mature neighbourhoods, serving residents living within the surrounding areas. The three outlets currently have six practising dental doctors, which will continue to remain working post completion of the
proposed acquisitions,” LYC said in a filing with Bursa Malaysia.
“Upon completion of the proposed acquisitions, the shareholding of LYC Dental shall be 70% by LYC Healthcare and 30% to be held by Dr Beh, which will align the interests of the group and Dr Beh in growing the business together,” it said.
The group plans to upgrade and/ or enhance the existing three outlets upon the completion of their proposed acquisitions and explore the possibility of opening additional dental clinics and/ or dental medical centres subject to market conditions and availability of the right locations.
