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Asian Healthcare Specialists to acquire 51% interest in Cornerstone Asia Health

ASIAN Healthcare Specialists Limited (AHS) intends to acquire a 51 per cent interest in Cornerstone Asia Health for S$32 million from a group of vendor doctors, who will hold the remaining 49 per cent.

Cornerstone Asia Health provides healthcare services across different specialisations, offering key services in ophthalmology, urology, dermatology and gastroenterology as well as family medicine. The group operates eight specialist and family medicine clinics.

The proposed acquisition will be satisfied by S$5 million in cash and the issue of shares in AHS at S$0.26 apiece, which amounts to about S$27 million.

The issue price for the consideration shares is at a premium of 17.43 per cent over the volume-weighted average price of S$0.2214 for trades done on the Singapore Exchange for the full market day on Nov 26.

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The consideration shares represent approximately 31.96 per cent of the existing share capital of the company and approximately 24.22 per cent of the enlarged share capital.

In a bourse filing, the group said that the proposed acquisition is in line with its business strategies and future plans to invest in management and healthcare professionals. It provides the group the opportunity to acquire several established healthcare assets in a variety of medical specialisations and diversify the company's current portfolio and strengthen its existing business, said AHS.