KUALA LUMPUR: LYC Healthcare Bhd's subsidiary, LYC Mother & Child Centre Sdn Bhd (LYCMC), plans to buy out its joint venture partner to take over a 67-bedroom confinement care facility in Johor Bharu for RM4.5 milion.
In a filing with Bursa Malaysia Securities Bhd, LYC said LYCMC signed a share sale agreement with Singapore-based SOG Mummy & Baby Centre Pte Ltd on Dec 30, 2023 to buy 1.96 million ordinary shares and 5.39 million redeemable preference shares or a 49 per cent interest in LYC SOG Mother & Child Sdn Bhd.
LYCMC intends to fund the purchase of shares through internally generated funds.
As at financial year ended March 31, 2023, LYC SOG, which offers postpartum confinement care and related services, catering to both Malaysian and Singaporean customers choosing to spend their post-childbirth confinement period in Johor Bahru, reported a net loss of RM4.196 million.
LYCSOG was incorporated on April 13, 2021.
LYC said the proposed acquisition presents an opportunity for the group to fully own and control LYCSOG, allowing it flexibility to expand its confinement care business in Johor.
The full ownership in LYCSOG also allows LYC group to arrange and decide on the structure and timing for fundraising of new capital, as and when required, to ensure the successful execution of the group's expansion plan in the confinement care business, as well as to capitalise on other future growth opportunities in the mother and child care related services.