SINGAPORE (June 1): HC Surgical Specialists has announced the proposed acquisition of stakes in two medical-related companies – Medinex and Medical L & C Services (MLCS) – for a total of $5.4 million.

First, HC Surgical entered into a sale and purchase agreement with Jessie Low Mui Choo to acquire 49.0% equity interest in Medinex for a total consideration of $4.3 million.

Low holds 95% of the total issued shares in Medinex, a management and service provider for the medical clinics industry.

Under the terms of the proposed acquisition, Low will be providing HC Surgical with a profit guarantee of $2.94 million based on the aggregate audited profit after tax attributable to the company’s 49% equity interest in Medinex for 4.5 years.

Low will be employed by Medinex as its chief executive officer, and shall manage the company for a minimum of 10 years.

Next, HC Surgical also entered into a sale and purchase agreement with Lai Junxu to acquire 51.0% of the total issued and paid-up share capital of MLCS for a total consideration of $1.1 million.

Lai holds 100% of the total issued shares in MLCS, which is in the business of providing chronic home care and palliative care.

Under the terms of the agreement, Lai will be employed by HC Surgical as a family physician, as well as manage MLCS for a minimum of 10 years.

Subject to completion of the proposed acquisition, HC Surgical says it will enter into a separate sale and purchase agreement to buy the remaining 49.0% of the total issued and paid-up share capital in MLCS from Lai at a later stage.

Shares of HC Surgical Specialists closed flat at 58 cents on Thursday.