SINGAPORE (Jan 4): Clearbridge Health’s wholly-owned subsidiary, Clearbridge Health (Philippines), has entered into a conditional share purchase agreement to acquire 65% of the common shares in the issued share capital of Marzan Health Care Inc for 69.6 million Philippine pesos ($1.9 million).
The target company operates a medical centre offering a wide range of services including pathology services, imaging diagnostics, dental care, as well as dialysis and renal care in Manila, Philippines.
Following the completion of the proposed acquisition, Clearbridge says it also intends to enter into a subscription agreement to subscribe to cumulative, non-voting, redeemable preferred shares in Marzan at 1.00 peso per share, for a total subscription price of 25 million pesos.
Subject to approval of the Philippines Securities Exchange Commission, the proposed subscription will see Clearbridge holding 100% of the preferred shares in Marzan.
The proposed transactions will be funded via proceeds from Clearbridge’s initial public offering (IPO) and bank borrowings.
Clearbridge says the proposed transactions will provide the group with a platform to expand its business in the Philippines.
Marzan also holds the required licences to provide a wide range of medical services in the Philippines, which would allow Clearbridge to accelerate its expansion in the country.
In addition, the group says it expects to be able to leverage on Marzan’s existing distribution network to deliver the group's precision medicine products and services.
Clearbridge earlier disclosed it had entered into a term sheet for the potential acquisition in the offer document for its IPO in December.
“The Philippines remains a vastly untapped market for the provision of precision medical healthcare services. We see huge potential for Clearbridge to establish a strong foothold in the precision medicine space on the back of rising affluence amongst a significant segment of the populace,” says Jeremy Yee, executive director and chief executive officer of Clearbridge.
Shares of Clearbridge closed 1.5 cents higher, or up 3.8%, at 41 cents on Thursday.