Singapore O&G in JV to open postpartum confinement centre in Johor

SINGAPORE O&G is establishing a postpartum confinement centre in Johor under a newly-formed venture, in which it will pump in RM1.96 million (S$640,000) for a 49 per cent stake and two board seats.

The Catalist-listed firm stated in a regulatory filing on Thursday that it had entered into a joint venture agreement earlier in the day with LYC Mother & Child Centre to incorporate a special purpose vehicle to set up a postpartum confinement centre with up to 130 beds in Johor.

The confinement facility is expected to be near the Singapore-Malaysia border to serve residents from both nations, and more such centres could be established in Malaysia under the agreement.

Its Malaysian partner will utilise its expertise in establishing and running the day-to-day business of the confinement centre while Singapore O&G will leverage its healthcare experience particularly in obstetrics and gynaecology and paediatrics, to provide advice on the operations and regulatory matters, Singapore O&G added.

The venture is not expected to change the risk profile of the group, nor have any material impact on the net tangible assets and earnings per share of the group for the financial year to December.

Proceeds from its initial public offering in 2015 will be used to fund this venture.

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A unit of LYC that is listed on Bursa Malaysia, LYC Mother & Child Centre will take a 51 per cent stake and three board seats in the RM 4 million venture.

The company has been offering postpartum confinement care services since 2018, and operates three confinement centres in Klang Valley, Malaysia with a total capacity of 122 beds in Taman Tun Dr Ismail, Puchong and Bukit Jalil.

Singapore O&G shares closed at S$0.26, up 1.96 per cent on Thursday, before this venture was announced.