KUALA LUMPUR (May 24): Sunway Bhd is acquiring a majority stake in Multicare Health Pharmacy Sdn Bhd, which operates 76 retail pharmacies across six states in Peninsular Malaysia. It did not disclose the exact percentage of the equity interest and the acquisition price.

Sunway said the purchase consideration is subject to the completion of certain conditions. "The acquisition is to be undertaken progressively over three tranches where the acquisition of Multicare is expected to be completed in 2026," it added.

In a statement today, Sunway said its wholly-owned subsidiary Sunway Holdings Sdn Bhd entered into a sale and purchase agreement last Friday with the owners for a majority stake in Multicare, which is one of the country's top five pharmaceutical retail players.

Sunway entered the retail pharmacy market in 2016 with the establishment of Sunway Pharmacy, which currently has 12 retail outlets in the Klang Valley and one in Johor.

With the proposed acquisition of Multicare's 76 pharmacies, the combined group is set to become one of the leading market players in the country.

Sunway Group president Tan Sri Chew Chee Kin said with the proposed acquisition, Sunway is able to leverage the combined expertise of Multicare's operational and pharmaceutical expertise and Sunway's comprehensive information technology digitalisation platform.

"We are confident that the enlarged pharmaceutical group will be one of the fastest growing retail pharmacy chains and most successful market leader in Malaysia.

"With the current Covid-19 pandemic, there is an increasing focus on the importance of primary health services such as retail pharmacies in serving the health needs of the community. This acquisition will allow Sunway to provide enhanced pharmacy and related services to consumers across the nation," he added.

Multicare Group chief executive officer and founder Lang Leong Cheng said the partnership will help accelerate the company's growth to greater heights.

Sunway shares closed up four sen or 2.41% at RM1.70 today, bringing a market capitalisation of RM8.39 billion.