PRG makes foray into healthcare ops

KUALA LUMPUR: PRG Holdings Bhd (PRG) is making an entry into the healthcare business in Malaysia following its proposed acquisition of a medical centre.

PRG subsidiary, PRG Healthcare Sdn Bhd on Saturday entered into a shares sale agreement for the proposed acquisition of the entire equity interest in Roopi Medical Centre Sdn Bhd (RMC) and its properties for a cash consideration of RM 18.3 mil.

In a statement, PRG said the proposed acquisition would entail RM 7.3 mil for the equity interest in RMC and RM11mil for the two properties in Kuala Lumpur from Linecom Corp Sdn Bhd, which in turn is owned by common shareholders of RMC.

Private medical services based RMC has over 39 years of track record and its facilities include four consultation rooms, three operating theatres, five nursery rooms and a total of 37 beds. PRG added that the cash acquisition would be funded via internally-generated funds and/or bank borrowings, the proportion of which would be decided later.

Meanwhile, PRG Healthcare has also entered into an MoU with Esther Postpartum Care Sdn Bhd (EPC) for the sale and purchase of 25% of the issued and paid up share capital in EPC for RM 3.75 mil.

Confinement services provider EPC, is part of the Dun Nan True Love Group, one of the most successful postpartum care services providers in Taiwan. It has over 300 branches in Taiwan and China.

PRG Group managing director Datuk Lua Choon Hann said the group was thrilled to achieved two significant milestones – the acquisition of RMC and signing of MoU with EPC.

“This marks the beginning of PRG’s foray into the healthcare business, and we look forward to more collaborations from potential partners in the future.

“We are excited to have gained foothold in this rapidly-expanding sector that plays a crucial role in the society. The corporate exercises are part of the group’s strategy to tap into the healthcare industry, which is able to generate alternative revenue stream for PRG going forward,” said Lua, adding that the rising affluence and favourable government policies would be the key drivers of demand for healthcare services.

PRG has launched its PRG Healthcare division which would offer value-added healthcare services to further reinforce the company’s competitive edge in the market and ensure a sustainable growth through prudent management of capital structure.