HC Surgical, Medinex associate invest in loan to dental clinic chain

CATALIST-LISTED HC Surgical Specialists and its listed associate, Medinex, have joined forces to invest - along with others - in a Singapore dental clinic chain.

Zenmedic Capital, the investment vehicle, will lend S$2.25 million, under a deal on Thursday to Nuffield Dental Holdings, at an annual interest rate of 5 per cent due twice a year.

HC Surgical Specialists and Medinex both have 27.8 per cent stakes in Zenmedic, which has a share capital of S$2,250 altogether.

The other investors in the three-year redeemable convertible loan are Shinex Capital, a substantial shareholder in Medinex, and Horizon Venture - each with a 22.2 per cent stake in Zenmedic.

Nuffield, which is owned by husband-and-wife team Samintharaj Kumar Samy Raja and Harvind Kaur, runs nine dental clinics in Singapore and has a franchise deal with Portuguese dental implant company Malo Clinic, according to bourse filings.

HC Surgical Specialists and Medinex noted that the loan to Nuffield is secured by a personal guarantee from Dr Kumar, as well as all of the couple's shares in Nuffield and the right to seek a fixed and floating charge over Nuffield's fixed assets any time during the loan period.

The investment depends on conditions such as there being no default or adverse material developments at Nuffield, as well as the completion of a satisfactory due diligence process.

HC Surgical Specialists said that the joint venture and proposed investment, which will be funded by internal resources, are not expected to have any material impact on the consolidated earnings or net tangible assets per share for the year to May 31.

Heah Sieu Min, executive director and CEO of HC Surgical Specialists, said: "We see great opportunities for synergies between our medical and dental practices. It is a natural and highly complementary investment that will allow us to further grow our business and enhance shareholder value."