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HC Surgical Specialists to buy private clinic operator
MEDICAL services group HC Surgical Specialists (HCSS) will be buying a 51 per cent stake in HMC Medical Pte Ltd for S$673,000 in cash, as part of its plans to increase its reach and market share in Singapore.
HCSS said HMC currently operates a clinic at Upper Thomson Road, where the HCSS group has no presence. "The board is of the view that the proposed acquisition is in line with the group's plan for growth, and will expand the group's presence in Singapore," its announcement said.
HMC recorded a loss before tax of S$161,000 for the 12 months ended June 30, 2017, and a net tangible liability and net liability value of S$146,000, as at June 30, 2017. This was due to a one-off GST expense of S$187,000 incurred for the financial periods up to December 2016 but recorded in the year to June 30, 2017.
The GST expenses was a result of HMC's omission to register for, and subsequent errors in its submissions of, GST under the relevant regulations in Singapore. Excluding this one-off GST expense, HMC's profit before tax would have been S$26,000 for the 12 months ended June 30, 2017, and its net tangible asset and net asset value would have been approximately S$41,000.
Under the terms of the proposed acquisition, HMC will continue to be helmed by Dr Chee Hsing Gary Andrew and Dr Lee Peng Khow, as general practitioners. Both doctors will also remain as shareholders of HMC, each with an equity interest of 24.5 per cent.