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Q&M to buy 20% stake in Superline for S$12.65m

SINGAPORE-LISTED Q&M Dental Group has agreed to acquire 20 per cent equity in a China-incorporated Superline Technology Co for a consideration of 62 million yuan (about S$12.65 million).

The listed dental group on June 29 signed a memorandum of understanding for the proposed equity acquisition with the vendors, Li Zhimin, Fan Ling, Zhou Jinsong, Wang Zhong and Yao Zheng.

The vendors will incorporate a new holding company to hold the shares of Superline. Q&M will acquire 20 per cent of equity in Superline from the new holding company.

Q&M Dental will pay 43.4 million yuan of the agreed purchase consideration in cash to the vendors. Another 18.6 million yuan will be injected into Superline as capital.

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Each of the named vendor shall sign a 12-year service agreement with Superline and Q&M Dental. The vendors have also agreed to extend guarantee towards, among others, Q&M's entitled dividends from guaranteed profits over the 12-year period of 2018 to 2029.

Founded by three PhD scientists in the materials science and technology field, Superline is a company incorporated in China and is in the business of manufacturing nikel-titanium endodontic root canal files and orthodontic arch wires.

Q&M said that the proposed acquisition is line with the expansion of the company into dental-related industries in China.

The proposed acquisition is subject to approval from Q&M's shareholders at a general meeting.