JCG to buy 51% stake in Malaysian medical aesthetics group
Singapore
JCG Investment on Tuesday announced its proposed acquisition of a 51 per cent stake in Malaysia-based medical aesthetics group, Beverly Wilshire Medical Centre, for up to RM15.3 million (S$5.1 million), subject to a minimum consideration of RM13.8 million.
Beverly Wilshire Medical Centre is constituted by a group of Malaysia-incorporated companies specialising in medical aesthetic treatments, healthy ageing wellness and regenerative therapies, cosmetic surgery, dental aesthetics and hair restoration.
It started in 2012 doing simpler procedures such as botex and fillers. Today, it operates two licensed medical centres and two licensed aesthetics clinics in Kuala Lumpur, Johor Baru and Petaling Jaya. The group currently has 18 doctors, of which eight are resident doctors and 10 are visiting doctors.
Ang Kok Huan, interim executive chairman and CEO of JCG, said the acquisition is part of JCG's overall strategic plan to build its health business. The company is looking at building a second business pillar in the area of wealth; Mr Ang will give more clarity on its strategy in the second half of the year.
JCG was formerly known as China Medical International Group. It diversified from metals distribution to aesthetic medical and healthcare services in 2015. In December 2018, China Medical underwent a series of corporate exercises. It welcomed investment holding firm Rest Investments as a new anchor investor, restructured the board of directors, appointed a new management team and renamed the company JCG Investment.
From Dec 31, 2018, Mr Ang was named as executive director and CEO. In February, he also became interim chairman after former chairman Hano Maeloa stepped down.
The latest acquisition will be fully paid via an issuance of up to 2.55 billion new shares at S$0.002 each, as well as the issuance of 180 million new unlisted warrants exercisable into the same number of new shares in the company at an exercise price of S$0.002 per warrant.
The issue price represents the volume weighted average price of S$0.002 per share for trades done on May 15, the market day before the agreements were inked.
Upon the completion of this acquisition, Francis Ng, chairman of Beverly Wilshire Medical Centre, will also be appointed as non-executive chairman of JCG. He has also committed to subscribe for a private placement of up to S$1 million in JCG.
His son, Howard Ng, will be appointed as an executive director of the company upon completion of the acquisition.
Mr Ang said he believes the acquisition is synergistic with JCG's medical aesthetics and healthcare business, and it will strengthen and expand the group's business into Malaysia.
The elder Mr Ng also noted that the demand for high-end medical services and medical aesthetics is expected to continue to grow with the increasing affluence in Malaysia and Southeast Asia.
Mr Ng added that he has been involved in many corporate exercises thus far, including one case where some Malaysian investors bought a mining company called Midwest Corporation for about A$70 million in 2004-2005 and appointed Mr Ng as executive director and deputy chairman in 2006 as part of the key management team. Mr Ng and his team grew MidWest to a market value of A$1.5 billion within four years and subsequently sold it to Sinosteel China for A$1.35 billion.
In this latest deal, he said he had given it some consideration and decided: "How much can you lose from 0.2 cent? Almost nothing. So I considered that and have taken a learned punt on wanting to get involved here and grow the company."
JCG also has an existing aesthetic medical clinic in Taiwan that Mr Ang said the firm is trying to "resuscitate" and review as part of its overall strategic corporate review. The group still has hopes to expand its business to China eventually because of the strong growth potential there.
JCG shares ended at 0.2 cent after the trading halt was lifted on Tuesday.
