Meta Health to sell Suzhou metal business for 17.2 million yuan
META Health is proposing to sell its metal business subsidiary in Suzhou, China, for 17.2 million yuan (S$3.2 million), while transferring 30.7 million yuan of its debt owed to Meta Health to the purchaser.
Another 305,589 yuan of debt owed by the Suzhou subsidiary to certain members of the group will be waived.
These transactions are to be approved at an extraordinary general meeting to be convened at a later date.
On Tuesday (Nov 21), the Catalist-listed healthcare technology company said its proposed transactions would enable the group’s complete exit from its loss-making metal business.
It follows the completion of recent divestments of Meta Health’s other operating subsidiaries in the metal business in Malaysia and Thailand.
The group said that disposing of the metal business in Suzhou – as well as waiving and transferring its debt to the purchaser – will allow Meta Health to deploy more resources to focus on growing and developing its portfolio within the healthcare business.
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These transactions would also strengthen Meta Health’s financial position and improve its cash position over the longer term.
After deducting estimated expenses from the transactions, Meta Health expects to net proceeds of S$203,128, which it intends to utilise entirely for general corporate and working capital purposes.
The amount of estimated net proceeds from the transactions translate to a net loss on disposal of about S$6.4 million for Meta Health.
For illustrative purposes, Meta Health’s net tangible assets per share as at end-2022 would have been S$0.0066 instead of S$0.0087 had transactions taken effect on Dec 31, 2022.
Assuming the transactions took effect on Jan 1, 2022, the group’s loss per share for FY2022 would have been S$0.0271 instead of S$0.0164.
Shares of Meta Health were unchanged at S$0.008 at Monday’s close.
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