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Q&M to buy majority stakes in 3 dental clinics in Liaoning, China
Q&M Dental Group is expanding its presence further in China, with plans to acquire a majority stake in three dental clinics in Liaoning province for 12.2 million yuan (S$2.65 million) in cash.
A subsidiary of the group, Shenyang Xin'Ao Hospital Management (Xin'Ao MC), has entered into two separate memorandums of understanding (MOU) to buy a 60 per cent stake in two dental clinics in Panjin City for 10.14 million yuan, and the same in another clinic in Gaizhou City for 2.016 million yuan.
These recorded revenues of four million yuan and 835,000 yuan respectively in 2014.
The MOUs provide for a profit guarantee of at least 20.33 million yuan for the two Panjin City dental clinics, and at least 4.35 million yuan for the Gaizhou City clinic, over 12 years starting from the date of completion of the acquisition. Xin'Ao MC will receive dividends of at least 14.81 million over the same period.
The current owners of the clinics have both agreed to sign a 12-year full time service agreement with Xin'Ao MC and the company.