Q&M Dental to acquire Veritas Dental in Bukit Timah for $800,000
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Q&M Dental Group said the proposed acquisition is in line with its plan to continue expanding its main dental business in Singapore.
PHOTO: ST FILE
Chong Xin Wei
SINGAPORE - Q&M Dental Group (Singapore) has entered into a binding memorandum of understanding (MOU) to acquire the dental clinic business of Veritas Dental for $800,000.
The group said on Sept 11 that the proposed acquisition is in line with its plan to continue expanding its main dental business in Singapore.
Veritas Dental is a company incorporated in Singapore and operates a dental clinic business at 781 Bukit Timah Road.
As at Sept 11, some 90 per cent of Veritas’ total issued and paid-up share capital is owned by Dr Sebrina Abdul Malik.
For the fiscal year ended Dec 31, 2023, Veritas’ net book value of its assets amounted to $203,486.
Q&M noted that the purchase consideration of $800,000 took into account several factors. These include the current market conditions, history, track record and future prospects of the business, as well as Dr Sebrina’s professional expertise, and strategic merits of the proposed deal.
Q&M also put down an advance deposit of $125,000, which will form part of the purchase consideration, to Veritas on Sept 10 when it signed the MOU.
As part of the agreement, Veritas and Dr Sebrina will need to ensure that the consolidated net profit after tax (NPAT) of the acquired business meets certain amounts. For instance, for the fiscal period from Sept 1, 2024, to Dec 31, 2026, the guaranteed NPAT to be met is $257,973. By the end of August 2032, the guaranteed NPAT of the acquired business should amount to $1 million.
On completion of the deal, Dr Sebrina will sign a service agreement with Q&M which will include non-compete and non-solicitation clauses, and will be effective for a minimum duration of 10 years, said the group.
Q&M also added that it does not expect the proposed deal and any other related transactions to have any material effect on its net tangible assets per share and earnings per share for the fiscal year ending Dec 31. In August, Q&M posted a net profit of $9.8 million for the first half ended June 30, up 84 per cent from $5.3 million in the previous corresponding period. The increase was attributed to higher revenue and net other gains.
It had said then that despite the “solid performance”, it will remain focused on and committed to solidifying the fundamentals of the group, including expanding its network and adopting innovative technologies.
Shares of Q&M closed flat at 28 cents on Sept 11. THE BUSINESS TIMES
