KUALA LUMPUR: KYM Holdings Bhd
is proposing to acquire a 70% stake in Regen Healthcare Sdn Bhd for up to RM33.5mil cash as part of its diversification into the healthcare sector.
In a filing with Bursa Malaysia, KYM said its wholly-owned subsidiary KYM Healthcare Sdn Bhd had entered into a conditional share sale agreement with Associate Prof Dr Rajesh Singh A/L Karnail Singh to acquire 700,000 shares in Regen.
The purchase consideration will be satisfied entirely in cash, comprising an initial payment of RM9.1mil and an earn-out consideration of up to RM24.4mil.
The earn-out will be determined based on Regen Group's average audited profit after tax (PAT) for the financial years ending Dec 31, 2026 and 2027.
If the average PAT is RM1.3mil or less, no earn-out consideration will be payable, while the total purchase consideration is capped at RM33.5mil.
Upon completion of the acquisition, Regen will become a 70%-owned subsidiary of KYM, while Rajesh will retain the remaining 30% stake.
“The KYM Group intends to fund the indicative purchase consideration through a combination of internally generated funds and/or bank borrowings, the exact quantum of which will be determined by the Board at a later date upon obtaining all the necessary approvals,” it said.
Regen provides healthcare services focused on orthopaedic conditions, including non-surgical treatments and surgical services such as joint replacement, fracture repair and minimally invasive procedures for sports injuries and spinal conditions. Its group also operates physiotherapy and ambulatory care services.
In conjunction with the acquisition, KYM is proposing to diversify its existing businesses to include healthcare activities and specialised medical services.
The group is currently principally involved in manufacturing, investment holding and property-related businesses.
KYM said the diversification would broaden its earnings base and reduce its reliance on manufacturing, which accounted for virtually all of its consolidated revenue in the financial year ended Jan 31, 2026.
The proposals are subject to shareholders' approval at an extraordinary general meeting and other necessary approvals. KYM expects the proposals to be completed by the first quarter of 2027.
