ISEC Healthcare looking to fully acquire, subscribe for shares in 5 eye clinics in Malaysia

Singapore

MEDICAL eye-care provider ISEC Healthcare has proposed to acquire 2 specialist eye clinics in Ipoh and Kampar, Malaysia for RM56.7 million (S$18.3 million).

Of this amount, about RM36.1 million will be satisfied in cash, while the remaining is to be fulfilled through the issuance of 21.8 million new ISEC Healthcare shares.

The cash portion will be funded by internal resources, the group said in a bourse filing on Thursday (Apr 7).

ISEC Healthcare is also looking to subscribe for shares in 3 Malaysia specialist eye clinics located in Manjung, Teluk Intan and Taiping.

These clinics have yet to conduct any business as they have applied for - but not obtained - the licence to operate or provide a private healthcare facility or service, as per the Private Healthcare Facilities and Services Act 1998 of Malaysia.

ISEC Healthcare expects IE Centre and Kampar Eye to provide the group with a growing stream of recurring income and cash flow in Malaysia, where the demand for specialised and quality medical eye-care services is expected to increase.

"The group's further venture into eye clinics is also well-placed in the strategic road map for the group's expansion and can potentially accelerate the revenue growth and execution of the business strategies of the group," it added.

Shares of Catalist-listed ISEC Healthcare last traded on April 6 at S$0.29.