Pacific Healthcare Holdings says it has entered into a conditional agreement with Al-Faiz Fund I (AFF) to place out 73,012,692 new ordinary shares representing about 20.63% of the enlarged issued share capital of the company.

The issue price for the shares offered to AFF is 11 cents per share which represents a premium of about 10% to the volume weighted average trading price of the shares of 10 cents on the SGX on Dec 3.

Separately, AFF will, through a sale & purchase agreement signed with Dr William Chong, Executive Director and Chief Executive Officer of Pacific Healthcare, purchase 15 million vendor shares at 11 cents each.

AFF will acquire a further 17,159,098 shares from the open market or from other shareholders in order to obtain a 29.72% stake in the company.

Dr Chong has also granted a call option to AFF for up to another 17,159,098 shares at $14.5 each in the event that AFF is unable to acquire the said shares from other shareholders. The offer is subject to approval of the shareholders of Pacific Healthcare and the relevant regulatory authorities.

AFF is a Shariah-compliant private fund established in Labuan and is managed by the Kuwait Finance House (Malaysia) Berhad Group of Companies (KFH-Malaysia). The fund was launched in 2008 and focuses on resilient industries like education, healthcare, food & beverage, light manufacturing, retail and distribution, consumer products as well as environmental management.

AFF and Pacific Healthcare are co-investors in two healthcare companies in Asia in the fields of diagnostic imaging and cardiac care.