SINGAPORE (Sept 16): IEV Holdings, which has struggled for years to turn around its engineering business, is acquiring Lady Paradise, a provider of pre- and post-natal care, for RM3.5 million ($1.2 million).

IEV plans to pay for this acquisition by issuing 46.16 million new shares at 2.5 cents each.

Upon completion of this acquisition, Lim Sew Lei and Liw Chai Yuk, existing shareholders of Lady Paradise, will own 11.21% of the enlarged IEV Holdings.

“The Board had decided to pursue the proposed acquisition as its first foray into the healthcare, postpartum care and wellness business sector,” says IEV CEO Christopher Do in an SGX filing.

“The healthcare industry is a comparatively stable market, largely independent of cyclical business and market fluctuations,” he adds.

IEV is poised to expand further into the healthcare services sector. “Other than [Lady Paradise], the group intends to acquire companies in the field of, amongst others, aesthetics and physiology,” the company adds.

The sellers of Lady Paradise have provided a profit guarantee of RM2.1 million for the three consecutive financial years ended Dec 21, 2022.

Year to date, IEV shares have dropped 15.4% to close at 2.6 cents on Sept 16, valuing the company at $9.5 million.