AsiaMedic's LuyeEllium purchase deal lapses

Singapore

CLINICAL services provider AsiaMedic said on Sunday that its sales and purchase agreement (SPA) to acquire LuyeEllium Healthcare Co has lapsed.

AsiaMedic and the vendors - Luye Medicals Group and three individuals, two of whom are doctors - will not be proceeding with the proposed acquisition.

The first announcement of the S$42.2 million proposed acquisition was made in April 2017. LuyeEllium provides management services to hospitals in South Korea and China.

The consideration was to be fulfilled via a new share issuance, and represented a good opportunity for the group to broaden the range of healthcare services it offers, the company said at the time.

In addition to its existing advanced diagnostics imaging and wellness services, the acquisition would have enabled AsiaMedic to provide non-clinical support and consultancy services to medical institutions, as well as allowed it to be involved in the operation of a post-partum centre.

But in its Sunday filing, the company said: "The board wishes to announce that the conditions precedent for the proposed acquisition have not been fulfilled or waived by the long-stop date (of Aug 31, 2018), and no further extension of time was agreed to by the parties to the SPA."

AsiaMedic said the group incurred total expenses for the proposed acquisition of about S$746,000, which was charged to the group's income statement for FY16 and FY17. Any remaining expenses from the lapsed acquisition are not expected to have material impact on the group's financial statements for the current fiscal year.

The company's shares closed at S$0.028 on Friday.