PETALING JAYA: Bintai Kinden Corp Bhd, which aims to include healthcare as one of its core businesses, is acquiring Johnson Medical International Sdn Bhd for RM50 million to expand its healthcare business segment.
The company yesterday entered into a memorandum of understanding (MoU) with the vendor Yeo Eng Lam to acquire the entire stake in Johnson Medical. The proposed acquisition would be satisfied via a combination of cash amounting to RM26 million and the issuance of 58.54 million new shares in Bintai Kinden at 41 sen each.
Pursuant to the MoU, Bintai and the vendor have mutually agreed to negotiate exclusively in good faith on the structures and terms of the proposed acquisition with the intention to finalise and enter into the relevant definitive agreements within 30 days from the date of the MoU or such other longer period as both parties may mutually agree upon.
Established in 1994, Johnson Medical is a medical engineering solutions provider focused on the manufacturing, supply and installation of operating theatres, critical care units and medical gas delivery systems, and trading of medical equipment and supplies.
Johnson Medical specialises in undertaking medical facility development and construction projects, which covers the design, construction planning, engineering, manufacture, equipping, installation, testing, commissioning, training and maintenance aspects.
Johnson Medical is a holder of Grade “G7” certificate by the Construction Industry Development Board of Malaysia to undertake building general works, general civil engineering works, mechanical works and medical equipment system.
Bintai Kinden executive vice-chairman Ibrahim Othman said the proposed acquisition presents an opportunity for the company to expand inorganically via acquisition of businesses that is similar industries to its existing core business in the construction sector.
“The exercise will also enable the company to expand its products and services offering in addition to its current distribution of Greenie Medi Cold Chain Box designed for storage and distribution of Covid-19 vaccine under its healthcare business segment.
“It will allow Bintai Kinden to tap into the healthcare segment to supply and install various medical devices such as medical pendants, mobile and modular healthcare units, bedhead panels, mobile surgical units and trauma workstation to capture the demand for healthcare business as a result of the Covid-19 pandemic, he added.
Under the MoU, the vendor will provide Bintai Kinden with a profit guarantee of RM3.5 million and RM5.6 million for the financial year ending Dec 31, 2021 and FY22 respectively.