KUALA LUMPUR (Oct 15): LYC Healthcare Bhd’s wholly-owned subsidiary is planning to issue up to 45 million new redeemable preference shares (RPS) to Kenanga Investors Bhd (KIB) at RM1 each.
The RPS to be issued by LYC Medicare Sdn Bhd will have a five-year tenure, according to a filing with Bursa Malaysia.
The proceeds of up to RM45 million will be used mainly to acquire shares in T&T Medical Group Pte Ltd and HC Orthopaedic Surgery Pte Ltd, two Singapore medical firms.
LYC Medicare’s plan to acquire 51% stakes in the two firms for about RM22 million each, was announced in May.
Upon completion of the subscription, dividends will be paid to KIB on a semi-annual basis at a rate of 9% per annum for the first three years and 9.5% for the fourth and fifth year, LYC Healthcare said.
Additionally, KIB will be entitled to a 15% profit sharing of LYC Medicare’s net profit on the fourth and fifth year.
The RPS contains no conversion rights and will not be listed on Bursa Malaysia. As such, the exercise will not have any effect on LYC Healthcare’s share capital and substantial shareholders' stakes.
Shares of LYC Healthcare closed one sen or 2.56% lower at 38 sen today, valuing the group at RM136.93 million.