Bintai Kinden acquires Johnson Medical International for RM50mil
12 Apr 2021
KUALA LUMPUR: Bintai Kinden Corporation Bhd (BKC) is acquiring Johnson Medical International Sdn Bhd (JMI) for RM50.0 million to expand its healthcare business segment.
The company today signed a memorandum of understanding (MoU) with JMI’s major shareholder Yeo Eng Lam to acquire approximately 3 million ordinary shares, representing 100 per cent equity interest stake in JMI.
The acquisition will be via RM26 million cash and 58.54 million new ordinary shares in BKC at RM0.41 each.
Further, BKC and Yeo mutually agreed to negotiate on the structures and terms of the acquisition and will formerly sign relevant definitive agreements within 30 days from the date of this MoU.
Under the MoU, Yeo will provide BKC with a profit guarantee of RM3.50 million and RM5.60 million for the financial year (FY) ending 31 December 2021 and FY22 respectively.
BKC executive vice chairman Ibrahim Othman said the acquisition presents a strategic opportunity for the company to expand inorganically, via acquisition of businesses or investments that is similar industries to its existing core business in the construction sector.
“The corporate exercise will also enable the company to expand its products and services offering in addition to its current distribution of Greenie Medi Cold Chain Box designed for storage and distribution of Covid-19 vaccine under its healthcare business segment.
“It will allow BKC to tap into the healthcare segment to supply and install various medical devices such as medical pendants, mobile and modular healthcare units, bedhead panels, mobile surgical units and trauma workstation to capture the demand for healthcare business as a result of the Covid-19 pandemic,” he said in a statement today.
Established in 1994, JMI is a medical engineering solutions provider focused on the manufacturing, supply and installation of operating theatres, critical care units and medical gas delivery systems and trading of medical equipment and supplies.
JMI specialises in undertaking medical facility development and construction projects, which covers the design, construction planning, engineering, manufacture, equipping, installation, testing, commissioning, training and maintenance aspects.
The company also is a holder of Grade G7 certificate by the Construction Industry Development Board of Malaysia to undertake building general works, general civil engineering works, mechanical works and medical equipment system.
“The corporate exercise is expected to contribute positively to the future earnings and improve the financial position of the BKC,” Ibrahim said.
Source: NST
