New Silkroutes to buy stakes in 6 clinics for $11.7m

SINGAPORE - New Silkroutes Group has entered into separate memoranda of understanding to acquire 60 per cent stakes in each of six medical practices for an expected total price of $11.7 million, the company announced on Tuesday (June 26) after the market closed.

The target companies are Lily Aw Medical Services, HL Family Clinic & Surgery (Bedok), HL Dermahealth Aesthetic Clinic, HL Clinic, HK Family Clinic & Surgery and Dr Chua's Family Clinic. The general practitioner and aesthetic clinics are all registered with the Singapore Ministry of Health and the doctors employed are registered with the Singapore Medical Council.

New Silkroutes, a healthcare and energy company, said that the acquisitions are in line with its strategy to expand its healthcare business.

"The board is of the view that the proposed acquisitions will reinforce the company's earnings base, strengthen the group's operations and financial position, and enhance the long-term interests of shareholders," the company said in a statement.

Sale and purchase agreements are expected to be finalised within one week from the completion of legal and financial due diligence. The final consideration may be subject to adjustments after due diligence is completed.

New Silkroutes shares last traded at 31.5 Singapore cents on Tuesday, before the deals were announced.