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New Silkroutes Group unit acquires six clinics for S$11.4m

HEALTHCARE and energy firm New Silkroutes Group has acquired six family medicine and aesthetics clinics through its subsidiary HSI Medical for S$11.4 million, extending its healthcare offering beyond dental services, it announced after the market closed on Thursday night.

“The acquisition is in line with the group’s strategy to focus on health care as a core business and to expand in this area via strategic acquisitions and collaborations," said chief executive officer Goh Jin Hian. "We intend to build our brand and capabilities both locally and regionally, and we are still pursuing opportunities in specialist care and hospital management."

HSI Medical has acquired a 60 per cent stake in HL Clinic Pte Ltd, HL Family Clinic & Surgery (Bedok) Pte Ltd, HL Dermahealth Aesthetic Clinic Pte Ltd, HK Family Clinic & Surgery Pte Ltd and Lily Aw Pasir Ris Family Clinic & Surgery, as well as a 51 per cent stake in Dr Chua’s Family Clinic Pte Ltd. Collectively, the clinics generated an adjusted aggregate earnings of approximately S$2.4 million in their last financial year.

The acquisition brings the group's total number of clinics to 17. Besides the six new acquisitions, these include one dental specialist clinic, eight dental clinics and two traditional Chinese medicine (TCM) clinics. The group also has two dental supplies companies.

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Financed by internal funds and bank borrowings, the acquisition is expected to contribute positively to the earnings of the group for the financial year ending June 30, 2019.

New Silkroutes Group shares closed down half a Singapore cent or 1.9 per cent at 26.5 Singapore cents on Thursday before the announcement.