DJ EQS-News: Union Medical Healthcare acquires medical laboratory institution in Hong Kong to enhance capability in providing Nucleic Acid screening tests for COVID-19 and diverse diagnostic tests
EQS-News / 15/12/2020 / 07:19 UTC+8
[FOR IMMEDIATE RELEASE]
Union Medical Healthcare acquires medical laboratory institution
in Hong Kong
to enhance capability in providing Nucleic Acid screening tests for COVID-19
and diverse diagnostic tests
(15 December 2020, Hong Kong) Union Medical Healthcare Limited ("Union
Medical Healthcare" or the "Company", which together with its subsidiaries
is referred to as the "Group", SEHK stock code: 2138), the largest
non-hospital medical group in Hong Kong*, is pleased to announce that the
Group will acquire a total 97% equity interests of a leading medical
laboratory company in Hong Kong. The total consideration will be paid in
cash and Union Medical Healthcare's shares which are to be allotted and
issued.
The acquisition target is one of the largest private medical laboratories in
Hong Kong and was established over 40 years ago. It is one of the first
local institutions recognized by the Hong Kong government to conduct
COVID-19 nucleic acid screening test. The medical laboratory company
provides full diagnostic laboratory testing services to doctors and
medically-related institutions with over 40 registered medical laboratory
technicians, which is one of the largest teams in terms of lab professionals
in the private sector. The target currently operates five medical
laboratories in Hong Kong. The target company recorded an audited net profit
of HK$26.65 million for the year ended 31 March 2020. During the pandemic,
the demand for COVID-19 related testing surged and the target company
recorded an unaudited net profit of HK$46.16 million for the six months
ended 30 September 2020. In addition, the target company also provides
diversified medical testing services, such as Obstetrics and Gynecology
related tests, allergy profiles, anti-aging, cancer markers, dengue fever
profile, gastrointestinal and reproductive medicine related tests.
Pursuant to a sale and purchase agreement, the acquisition will be conducted
in two phases. The consideration for the first tranche of the equity
interests, namely a 75% equity stake, in the medical laboratory company is
HK$337.5 million. The Group will pay HK$229.5 million of the consideration
in cash and allot and issue HK$108 million worth of consideration shares to
pay the remainder.
In the final phase of the acquisition, Union Medical Healthcare will acquire
the remaining equity interests in the medical laboratory company. The amount
of the consideration depends on the growth rate of medical laboratory
company's profit in 2023 and is subject to the terms and conditions of the
sale and purchase agreement. The consideration for the final tranche equity
interests acquisition will not exceed HK$238 million. The medical laboratory
company will guarantee that the aggregate net profits for three financial
years ending 2023 will be no less than HK$100 million. After the transaction
is completed, Union Medical Healthcare will hold 97% of the total issued
share capital of the medical laboratory company while the remaining 3% will
be held by the target company's key personnel.
Mr. Eddy Tang, Chairman, Executive Director and Chief Executive Officer of
Union Medical Healthcare said, "As the local demand for COVID-19 nucleic
acid testing has surged, the medical laboratory company to be acquired will
enable the Group to provide COVID-19 testing related services. In addition,
the medical laboratory company conducts diverse diagnostic tests so it will
become an indispensable part of the entire ecosystem of the Group's
businesses, enabling the Group to access to medical practitioners and
develop the reproductive medicine related testing services. The Group has
been actively looking for opportunities for suitable investment to implement
a strategy for developing its medical business, the acquisition will create
a new growth driver that contributes to the Group's profit. We believe that
the acquisition can further expand the scope of the Group's medical
services, consolidate its industry leadership as a one-stop comprehensive
medical service provider, and effectively expand its share of the medical
care market."
- End -
About Union Medical Healthcare Limited
Union Medical Healthcare is Hong Kong's largest non-hospital medical service
provider*, leveraging its core businesses of preventive and precision
medicine, and committed to developing medical artificial intelligence by
integrating its multi-disciplinary medical services. The move, which is
supported by the Group's high-end branding and quality customer services, is
aimed at offering customers safe and effective medical services with
professionalism.
The Group principally engages in the provision of one-stop medical and
health care services in Greater China. The Group provides a full range of
services and products under its well-known brands, including those of its
one-stop aesthetic medical solutions provider DR REBORN which has ranked
first in Hong Kong by sales for years, primary care clinics jointly
established with Tencent Doctorwork, chiropractic services centre SPINE
Central, New York Spine and Physiotherapy Center NYMG, health management
centre re:HEALTH, a vaccine centre Hong Kong Professional Vaccine HKPV, a
comprehensive dental centre UMH DENTAL CARE, a diagnostic and imaging centre
HKAI, an oncology treatment centre reVIVE, a day procedure centre HKMED, a
specialty clinic SPECIALISTS CENTRAL, Hong Kong International Cardiology
Center and a professional hair care center HAIR FOREST.
*According to the independent research conducted by Frost and Sullivan in
terms of revenue in 2018 and 2019
For further information, please contact:
iPR Ogilvy Limited
Callis Lau / Molisa Lau / Shana Li / Ada Chew
Tel: (852) 2136 6952 / 2136 6953 / 3920 7649 / 3920 7650
Fax: (852) 3170 6606
Email: umh@iprogilvy.com
File: Union Medical Healthcare acquires medical laboratory institution in
Hong Kong to enhance capability in providing Nucleic Acid screening tests
for COVID-19 and diverse diagnostic tests [1]
15/12/2020 Dissemination of a Financial Press Release, transmitted by EQS
Group.
The issuer is solely responsible for the content of this announcement.
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(END) Dow Jones Newswires
December 14, 2020 18:19 ET (23:19 GMT)
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