ISEC Healthcare is looking to buy Indah Specialist Eye Centre in Johor Bahru, Malaysia for some RM37.4 million .
The Catalist-listed firm's wholly-owned subsidiary has entered into a conditional sale and purchase agreement with six individuals to purchase the entire share capital of the company operating the centre, ISEC Healthcare said on Tuesday. Indah Specialist has maintained a stable increase in its income stream and a profit track record for the last three financial years. ISEC Healthcare noted that the eye centre will provide it with a growing stream of recurring income and cash flow from Johor Bahru, which is expected to see a rise in demand for specialised and medical eye care services.
The purchase price was arrived at on a willing-buyer, willing-seller basis, based on approximately a multiple of 13 times of Indah Specialist's adjusted and normalised profit after tax for the period between July 1, 2018, and June 30, 2019.Of the RM37.4 million sum, about RM17.9 million will be paid in cash, while the remaining RM19.4 million will be paid via the allotment and issue of around 18 million new ISEC Healthcare shares at S$0.356 apiece.