EXTENDING its series of acquisitions this year, Q&M Dental Group said yesterday that it has reached a deal to buy a 60 per cent stake in Smilebay Dental Clinics in Penang for RM12.29 million (S$4.4 million) in cash and shares.

"The proposed acquisition is in line with the company's plan to continue the expansion of its main dental business in Malaysia and allows the company to add six fully operational clinics in Penang, Malaysia," the mainboard- listed company, one of the largest private dental healthcare groups in Singapore, said in a regulatory filing.

Q&M already owns eight dental outlets and one dental supplies and equipment distribution company in Malaysia.

Earlier this month, it announced that it was expanding to China by acquiring a controlling stake in three dental clinics in Liaoning province for 12.2 million yuan (S$2.6 million) in cash.

Last month, Q&M reported the acquisition of eight dental clinics across Singapore for $20.3 million, and in April, the company said it had reached a deal to buy TP Dental Surgeons, a large surgery in Ngee Ann City Tower B, for $28.6 million.

For its latest deal, Q&M will collectively acquire 60 per cent of the shareholding in Yong Dental, Smilebay Dental and Smilebay (BW) from Dr Yong Peng San, Dr Tong Hiew Yu, Dr Tan Pui Ling and Dr Lim Sze Ming.

About RM6.8 million will be paid in cash, while the remaining RM4.5 million will be satisfied with Q&M shares at 72 cents each, which is 90 per cent of the weighted average price of the firm's shares traded on June 19.

Q&M said it will also increase the issued capital of Smilebay Dental Clinics by RM1 million within one month of the deal's completion.

In a report last Friday, CIMB said Q&M still has $29.6 million of the initial $60 million cash remaining from the three-year 4.4 per cent Singapore dollar bond it sold in March. "We anticipate more acquisitions," CIMB analyst Kenneth Ng wrote.

Q&M shares slipped 1.5 cents, or 2.1 per cent, to 71 cents yesterday.