SINGAPORE Medical Group has proposed to acquire a 61.9 per cent interest in an imaging and radiology firm for S$8.54 million which will be paid by issuing 33.36 million new SMG shares at 25.6 Singapore cents per share.
The deal to acquire Lifescan Imaging Pte Ltd, which SMG already owns 38.1 per cent of since middle of last year, requires shareholders' nod given that it's an interested person transaction as three of the vendors are SMG directors and controlling shareholders, said the firm.
They are SMG non-executive chairman Tony Tan Choon Keat, executive director and CEO Dr Beng Teck Liang and executive director Dr Wong Seng Weng. Mr Tan and Dr Beng are also SMG's controlling shareholders.
SMG said its directors believe that the proposed acquisition provides an opportunity to expand the business and also gain control of Lifescan as a wholly-owned subsidiary and strengthen the diagnostic business segment.
SMG shares were last traded at 29.5 Singapore cents on Friday afternoon before trading was halted pending the announcement. The counter will resume trading on Monday.