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SINGAPORE-LISTED Q&M Dental Group has agreed to acquire 20 per cent equity in a China-incorporated Superline Technology Co for a consideration of 62 million yuan (about S$12.65 million).
The listed dental group on June 29 signed a memorandum of understanding for the proposed equity acquisition with the vendors, Li Zhimin, Fan Ling, Zhou Jinsong, Wang Zhong and Yao Zheng.
The vendors will incorporate a new holding company to hold the shares of Superline. Q&M will acquire 20 per cent of equity in Superline from the new holding company.
Q&M Dental will pay 43.4 million yuan of the agreed purchase consideration in cash to the vendors. Another 18.6 million yuan will be injected into Superline as capital.
Each of the named vendor shall sign a 12-year service agreement with Superline and Q&M Dental. The vendors have also agreed to extend guarantee towards, among others, Q&M's entitled dividends from guaranteed profits over the 12-year period of 2018 to 2029.
Founded by three PhD scientists in the materials science and technology field, Superline is a company incorporated in China and is in the business of manufacturing nikel-titanium endodontic root canal files and orthodontic arch wires.
Q&M said that the proposed acquisition is line with the expansion of the company into dental-related industries in China.
The proposed acquisition is subject to approval from Q&M's shareholders at a general meeting.