KYM Holdings Bhd is proposing to acquire a 70% stake in Regen Healthcare Sdn Bhd for up to RM33.5 million in cash, marking the group’s planned diversification from manufacturing into healthcare and specialised medical services.
Its wholly owned subsidiary KYM Healthcare Sdn Bhd entered into a conditional share sale agreement on Sept 18 with Associate Prof. Dr Rajesh Singh A/L Karnail Singh to acquire 700,000 Regen shares, representing 70% of the company’s issued share capital.
Upon completion, Regen will become a 70%-owned subsidiary of KYM, allowing the group to consolidate its financial results. Dr Rajesh Singh will retain the remaining 30% stake.
KYM said the acquisition is intended to provide a new platform for revenue growth and reduce its heavy reliance on manufacturing, which accounted for up to 100% of the group’s consolidated revenue over the past three financial years.
Regen recorded profit after tax of about RM1.3 million for the financial year ended Dec 31, 2025. Its existing management is expected to remain involved in day-to-day operations during the financial years ending 2026 and 2027.
The proposed purchase consideration is capped at RM33.5 million, which KYM said limits its financial exposure under the transaction’s earn-out mechanism even if Regen performs above expectations.
Regen, incorporated in 2015, currently has three wholly owned subsidiaries — Regenerative Healthcare Pty Ltd in Australia, RACC and Regen Physio.
As a condition precedent to completion, Regen must either deregister its Australian subsidiary or transfer its entire interest in the unit to a third party outside the Regen group.
Alongside the acquisition, KYM is seeking to formally diversify its principal activities to include healthcare-related operations and specialised medical services.
The board said the move is expected to create an alternative recurring income stream, broaden KYM’s asset base and reduce its exposure to volatility in its existing manufacturing business.
