TWL inks agreement to expand role in developing private healthcare infrastructure

KUALA LUMPUR (May 9): Loss-making real estate developer TWL Holdings Bhd is proposing to participate in the development of specialist hospitals and other infrastructures, by acquiring stakes in two private companies.

TWL signed a memorandum of agreement with Wan Abd Halim Abd Majid and Mohamad Shohor Mahamud on Tuesday (May 9) to acquire a 60% stake in Urban Masterpiece (KMN) Sdn Bhd (UMSB) and another 60% stake in Dunia Sejahtera Sdn Bhd (DSSB).

UMSB is a private company and has obtained the right to be the property developer on a private hospital project that includes 160 beds and 20 units of three-storey shop offices on a 5.9-acre land parcel in Terengganu.

Meanwhile, DSSB holds the hospital license, having successfully secured all necessary hospital operating licences.

UMSB is 88% controlled by Wan Abd Majid, while the remaining 12% is held by Mohamad Shohor. In DSSB, each of them holds a 60% stake in the group.

In a statement, TWL said this strategic acquisition serves as a platform for the group to significantly expand its role in developing private healthcare infrastructure, specifically private hospitals.

The acquisition, slated to be free of encumbrances, comes with all attached rights, said TWL, formerly known as Tiger Synergy Bhd.

“This proposed acquisition positions us to leverage the long-term growth of the healthcare industry. Both UMSB and DSSB, being the hospital’s property developer and licence holder respectively, will propel our growth trajectory,” said TWL managing director Shirley Tan Lee Chin.

TWL registered a wider net loss of RM4.64 million for the first half ended Dec 31, 2022 (1HFY2023) versus RM1.25 million a year earlier, mainly due to depreciation of property, plant and equipment, higher administration expenses incurred from the ongoing corporate exercise and share-based payment from the issuance of employees’ share option scheme (ESOS) amounting to RM5.304 million.

Revenue for 1HFY2023 dropped to RM9.28 million, from RM11.39 million.

TWL closed flat at 4.5 sen on Tuesday, with a market value of RM164.66 million.