KUALA LUMPUR (Dec 9): TDM Bhd — which has interests in plantation and healthcare — announced it has entered in a share sale agreement with its healthcare subsidiaries Kumpulan Medic Iman Sdn Bhd and Kumpulan Mediiman Sdn Bhd today, to execute a share swap on Jan 2, 2015.

In a filing with Bursa Malaysia today, TDM said the share swap is part of its plan to streamline the healthcare investments, and house it under Kumpulan Medic Iman.

TDM, via its 90.49%-owned unit Kumpulan Mediiman Sdn Bhd, currently operates four “no-frills” hospitals, namely Kuala Terengganu Specialist Sdn Bhd (KTS), TDMC Hospital Sdn Bhd (TDMC), Kuantan Medical Centre Sdn Bhd (KMC) and Kelana Jaya Medical Centre Sdn Bhd (KJMC).

The reorganisation plan will be done in four stages, and will see TDM and Kumpulan Mediiman transferring their equity in KTS, TDMC, KMC and KJMC to Kumpulan Medic Iman, via a share allotment exercise.

“The above transfers is expected to be completed in the first quarter of 2015 (1Q15),” said TDM.

Upon completion of the reorganisation exercise, TDM added that Kumpulan Mediiman will sell its 90.49% stake or 8.65 million shares in Kumpulan Medic Iman for RM8.65 million, which will be satisfied by both cash (RM740,123) and debt settlement (RM7.91 million).

Shares in TDM went up 1 sen to close at 75 sen today, giving it a market capitalisation of RM1.11 billion. The Terengganu state government has a 60.7% stake in TDM.