LYC Medicare SG, the wholly-owned subsidiary of LYC Healthcare, had on 10 October 2022 completed the acquisitions of the remaining 49% stake in Singapore specialist clinics, T&T Medical Group (T&T) and HC Orthopaedic Surgery (HCOS) respectively.
To recap, the Group had initially acquired a 51% stake in T&T and HCOS in late 2020 to enhance its healthcare service offerings and expand its market presence in the Singapore healthcare sector.
T&T and HCOS provide general and specialised medical services particularly in the chronic disease and osteoporosis segments.
Since the initial acquisition, a new orthopaedic clinic by HCOS was established in Parkway East Hospital. This brings the total number of clinic under HCOS to two, including one located in Mount Elizabeth Hospital. In addition, a Magnetic Resonance Imaging (MRI) and Computerized Tomography (CT) scan services were introduced in T&T, building up its position as a one-stop chronic diseases centre.
“The completion of these acquisitions brings us one step closer in achieving our aim to list LYC Medicare SG on the Catalist board of the Singapore Exchange (SGX). Preparation work with our advisors is progressing well and we hope to complete the listing exercise early next year,” Managing Director cum Group Chief Executive Officer of LYC, Mr. David Sui Diong Hoe said.
“Leveraging on T&T’s and HCOS’s expertise and experience in the medical field, we believe we can attract more customers by enlarging our business presence across new locations, improving our facilities and generating more referrals from hospitals and other doctors,” he added.
Both companies contributed a cumulative revenue and profit after tax (PAT) of RM34.1 million and RM8.3 million respectively for the financial year ended (FYE) 31 March 2022 to LYC. With the completion of acquisitions of the remaining 49% stake, LYC Medicare SG will now be able to fully recognise T&T and HCOS financial results, and benefit from increasing its PAT attributable to Owners of the Company (PATANCI).
As the acquisitions were settled via a combination of cash and new shares in LYC Medicare SG, both the vendors of T&T and HCOS will remain financially interested with a collective stake of 14.0% in LYC Medicare SG, which serves to further align their personal interests to the business of LYC Medicare SG.
