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Q&M Dental acquires HK's CJ Group with seven clinics to expand business in region
Q&M Dental Group Singapore has entered into a binding agreement to acquire 60 per cent of CJ Group (Holding), a company that that provides general and specialist dentistry services in Hong Kong for HK$4 million (S$698,000) cash. In an announcement, Q&M said that the proposed Acquisition was in line with expanding its main dental business in the region and allows the company to add seven fully operational dental clinics - six in Hong Kong and one in Shenzhen, China.
Towards this end, the company signed a binding points of agreement last Friday with Chiu Hon Ching, X-Tron International Holding (wholly owned by Chan Lif Sing), One Hong Kong Dental (wholly owned by Law Hong Yu Anthon), Ji Chao and Chiu Wai Sing for the proposed acquisition.
The deal is subject to certain conditions precedent including the completion of a restructuring and the due diligence exercise. The vendors of CJ Holding will undertake an internal restructuring to incorporate a new holding company that will hold their remaining 40 per cent interest in CJ Holding before the completion of the proposed acquisition.
The vendors will also ensure that the companies operating the seven clinics in Hong Kong and Shenzhen will be wholly owned subsidiaries of CJ Holding while its founders - Dr Chiu Hong Ching, Mr Chan, Dr Law and Dr Ji - have each agreed to enter into a 15 year service agreement with Q&M.
On completion of the deal, CJ Holding will issue additional shares to Q&M and the new holding company in proportion to maintaining Q&M's 60 per cent interest and the new holding company's 40 per cent of CJ Holding for HK$20 million.