ISEC Healthcare to buy four medical clinics in diversification

MEDICAL eyecare service provider ISEC Healthcare is planning to expand into general medical services and aesthetic treatment services by buying four medical clinics in Singapore.

The proposed acquisition will cost about S$13.9 million in total.

In an announcement on Friday night, ISEC said that it has entered into a conditional sale and purchase agreement with the vendors and doctors Lee Yeng Fen, Koo Xian Yeang and Ng Chiew Fang. Dr Lee is the wife of ISEC's executive vice-chairman Lee Hung Ming, who is also a controlling shareholder of the firm.

The four clinics - in Bukit Batok, Sembawang, Woodlands and Yew Tee - have a stable income stream and profit track record for the past five years, said ISEC.

"The group will have the opportunity to tap on the patient base of the clinics as referral centres for ophthalmology-related cases as well as to expand its ophthalmology services to HDB neighbourhoods," it said. "Due to the location of the clinics in heartland areas, the group will be able to expand its demographic of patients as well as increase its visibility and promote its brand name in these new locations."

Half of the consideration will be paid in cash, and another half through the issuance of new shares to the vendors at S$0.25, a 10 per cent discount to the average price of the shares in the 60 days before the agreement was signed.

The vendors have provided profit guarantees for five years starting from Jan 1 next year, and will also enter into five-year employment contracts.