KUALA LUMPUR (March 1): Kenanga Investment Bank Bhd (KIB), via its wholly-owned unit Kenanga Investors Bhd, is taking up a 25% stake in LYC Healthcare Bhd's Singapore unit that is considering listing its healthcare business on the Singapore Exchange (SGX).
Kenanga Investors inked a conditional sale and purchase agreement on Tuesday with LYC Medicare Sdn Bhd to acquire the stake, which represents 6.53 million shares in LYC Medicare (Singapore) Pte Ltd (LYC SG), for S$12.9 million (equivalent to RM39.9 million), cash. LYC Healthcare will hold the remaining 75% stake in LYC SG post-divestment.
KIB is the largest shareholder of LYC Healthcare with a 17.72% stake held via Kenanga Investors (6.46%) and Kenanga Islamic Investors (10.75%), according to Bloomberg data. The second largest is LYC Capital Sdn Bhd with 11.93%.
In a statement, LYC Healthcare said the disposal set a pre-money valuation for LYC SG at S$51.67 million (approximately RM159.7 million), which represents an almost doubling of LYC SG's valuation in less than two years.
LYC SG is considering listing its healthcare business on the Catalist Board of the SGX, and ZICO Capital Pte Ltd has been appointed its full sponsor for the proposed listing.
"The proposed listing, which is still at a preliminary stage at this juncture, is subject to, amongst others, satisfactory due diligence and assessment of suitability for listing by LYC SG's professional advisers, approvals being obtained from the relevant authorities in Singapore and Malaysia (where required), as well as the shareholders of LYC Healthcare at a general meeting to be convened. In addition, the proposed listing is subject to assessment of other factors such as general economic and capital market conditions," LYC Healthcare said.
LYC Healthcare said Kenanga Investors has, at its invitation, agreed to participate and commit as the pre-initial public offering (IPO) investor for LYC SG's proposed listing.
"As an anchor investor prior to the IPO, Kenanga Investors provides an external validation to the group's proposed listing ambition, which can help to mitigate the risks of an IPO by building other investors' confidence in LYC SG, as well as supporting the benchmark IPO valuation and in turn potentially driving a higher total shareholder return," said LYC Healthcare.
Meanwhile, the divestment provides the group an immediate opportunity to unlock and realise the value of LYC SG, as well as provide a surplus cash flow of S$12.92 million (equivalent to RM39.93 million) to the group.
"The proceeds arising from the proposed divestment will enable the group to settle the partial redemption of its outstanding RPS (redeemable preference shares) of RM30 million, which is expected to result in dividend rate saving ranging from RM2.7 million to RM2.85 million per annum, as means to reduce its indebtedness and financing cost and in turn reposition the group towards a better financial footing moving forward," said LYC Healthcare.
A portion of the proceeds has been earmarked for business expansion, which LYC Healthcare said will enable it to capitalise on suitable and viable investment opportunities in the provision of healthcare and healthcare-related businesses.
LYC Healthcare shares ended half a sen or 2% lower at 24.5 sen, giving the group a market capitalisation of RM113.81 million.
KUALA LUMPUR (March 16): LYC Healthcare Bhd's Singapore unit LYC Medicare (Singapore) Pte Ltd (LYC SG) is buying the remaining 49% stakes it does not hold in two Singapore-based healthcare companies via cash and share deals, ahead of the unit's proposed listing on the Singapore Exchange (SGX). The two companies are T&T Medical Group Pte Ltd (T&T) and HC Orthopaedic Surgery Pte Ltd (HCOS). It is buying the stake in T&T from Dr Ting Choon Meng for S$8.1 million (RM24.95 million) and the stake in HCOS from Dr Chan Ying Ho (Dr Henry) for S$9.163 million (RM28.22 million). The conditional share agreements for the transactions were inked on Wednesday (March 16). T&T operates a one-stop chronic disease centre focusing on chronic degenerative joint diseases and spine, pain management, and metabolic diseases like Diabetes Mellitus, hypertension and high cholesterol. HCOS primarily serves patients requiring various orthopaedic specialist treatments, including surgeries. On completion of the transactions, Dr Ting and Dr Henry will become shareholders of LYC SG, with respective 5.38% and 8.62% stake. LYC SG is considering listing its healthcare business on the Catalist Board of the SGX, and ZICO Capital Pte Ltd has been appointed as its full sponsor for the proposed listing. Earlier this month, Kenanga Investment Bank Bhd (KIB), via its wholly-owned unit Kenanga Investors Bhd, took up a 25% stake in LYC SG for S$12.9 million (RM39.9 million), cash. LYC Healthcare said Kenanga Investors has, at its invitation, agreed to participate and commit as the pre-initial public offering (IPO) investor for LYC SG's proposed listing. KIB is the largest shareholder of LYC Healthcare with a 17.22% stake held via Kenanga Investors Bhd (6.46%) and Kenanga Islamic Investors (10.76%), according to Bloomberg data. The second largest is LYC Capital Sdn Bhd with 11.93%. LYC Healthcare shares closed up one sen or 4.17% at 25 sen on Wednesday, giving it a market capitalisation of RM116.13 million.
KUALA LUMPUR (March 23): LYC Healthcare Bhd said it is venturing into the dental industry through the acquisitions of three dental clinics in the Klang Valley for a total of RM3.18 million.
In a statement filed with Bursa Malaysia on Wednesday, the healthcare service provider said its wholly-owned subsidiary, LYC Dental Group Sdn Bhd, has signed agreements with Dr Beh Wee Ren to acquire the KL Dental outlets in Kiara 163 and SS15 Courtyard.
LYC Dental signed another agreement with Dr Beh and Dr Andy Ooi Yet Lee to acquire the KL Dental outlet in Taman Connaught, the group said.
The acquisitions will be paid for via a mixture of cash and shares in LYC Dental, resulting in 70% of the dental firm being owned by LYC Healthcare and 30% by Dr Beh.
"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," said LYC Healthcare.
The group said it plans to upgrade the three outlets upon the completion of the acquisitions to improve their customer service offerings. It will also explore the possibility of opening additional dental clinics and dental medical centres subject to market conditions and availability of the right locations.
LYC Healthcare noted that Dr Beh has 12 years of experience in practising as a dental surgeon with special interest in dental implants, invisalign and medical aesthetics. Besides that, he is the president of Malaysian Oral Implantology Association and treasurer of the Malaysian Association of Aesthetic Dentistry.
Dr Beh is also a dental entrepreneur who previously co-founded and expanded iCare Dental group to be one of the fastest growing groups with up to 28 branches in Malaysia, the group said.
"As a result, LYC Healthcare has identified Dr Beh as a suitable partner to venture into the dental industry and build an integrated dental platform together with in the coming years," the group said. Looking ahead, LYC Healthcare said the group foresees the growth in the dental industry to mainly be driven by a growing and ageing population that increases demand for dental services.
Other factors driving growth within the industry, it said, will come from the higher demand for cosmetic dentistry due to rising disposable income among consumers, as well as the expansion in the dental tourism industry in tandem with the growing healthcare travel industry.
LYC Healthcare shares closed unchanged at 24.5 sen, bringing a market capitalisation of RM113.81 million.
Triangle correction should be completed for wave 2. Expect rebound and near term target of 32/34sen. Wave 3 target around 47-50sen. Spore dual Listing is soon and the datacentre project is in the process. Hopefully more good news for wave 3 uptrend move
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....