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Asian Healthcare Specialists to buy anaesthesia business for S$11.05m
CATALIST-LISTED Asian Healthcare Specialists will pay S$11.05 million for the medical services businesses of an anaesthesiologist, under a sale and purchase agreement inked on Friday, said the board.
The deal with Roy Lim Tet Chen will be paid with S$1 million in cash, and new shares issued at S$0.28 apiece, or a premium of 2.1 per cent over the volume-weighted average price on the last market day.
While no independent valuation was carried out on Dr Lim's firm, which is named Asian Anaesthesia Care, the Asian Healthcare Specialists board said the firm's unaudited pro forma net tangible assets were S$31,783 as at Dec 31, 2017, while its pro forma profit after tax was S$845,000 for the 12 months.
The price tag was reached at on a willing buyer, willing seller basis after arm's-length negotiations, the board said. It added that the deal took into account similar transactions in the healthcare industry, as well as the prospects of the anaesthesia business and the vendor's track record, among other factors.
The board said that it believes the proposed deal "is in the best interests of the group, as the vendor is a reputable senior anaesthesiologist whose medical practice brings about synergies with the group's existing surgical businesses, where anaesthetic services are generally required".
"Additionally, the proposed acquisition is another step in the group's plans to establish a pain management centre," the board said.
Asian Healthcare Specialists added S$0.01 or 3.7 per cent to S$0.28 before the announcement.