KUALA LUMPUR: DC Healthcare Holdings Bhd has proposed to acquire the entire 100% stake in I Bella Sdn Bhd for RM70mil as part of the group's strategy to enhance its service offerings and market presence.
The acquisition comes with a profit guarantee for the financial years ending March 31, 2024, and 2025, with the vendors of I Bella assuring a minimum profit after tax (PAT) of RM5.2mil and RM6.2mil, respectively, the aesthetic medical services provider said in a statement.
DC Healthcare said it will fund the acquisition via RM35mil cash, of which RM15mil will be utilised from the proceeds of the initial public offering (IPO) while the remaining RM20mil will come from the group's inernally generated funds and/or bank borrowings.
The remaining RM35mil will be satisfied via the issuance of 60.34 million new shares in DC Healthcare, issued at a price of about 58 sen per share.
The group said the issue price is at a slight premium to the current share price of 50 sen a share (as at 12.30pm, Nov 21) as it underscores the robust future prospects it envisages post-acquisition of I Bella.
I Bella, which has a strong foothold of Malay customers, is poised to significantly enrich DC Healthcare's client portfolio, especially in services like facial and skin treatments, and body and face contouring, said DC Healthcare.
"Integrating I Bella’s expertise, especially their strong foothold in the Malay market segment, will create synergies that enhance our competitive position," said DC Healthcare managing director Dr Chong Tze Sheng.
Separately, DC Healthcare also proposed a bonus issue of 249.08 million free warrants, on the basis of one warrant for every four shares held, to reward its shareholders.
The entitlement date of the bonus issue will be determined and announced at a later data upon receipt of all the relevant approvals.
Additionally, the group is establishing an Employee Share Option Scheme (ESOS) to recognise the significant contributions of its staff, especially those with LCP certification, it said.