SINGAPORE (Oct 11): New Silkroutes Group is acquiring a 70% stake in three clinics from The Dental Hub for $3.2 million to expand its healthcare portfolio.

The three clinics are located at Bedok North Street 4, PSA Building at Alexandra Road, and Yew Tee Point at Choa Chu Kang. Collectively, they generated about $2.7 million in revenue and $0.5 million in earnings in their last financial year.

New Silkroutes will issue 7.2 million new shares at 44 cents each as consideration for the clinics, which are equally owned by two dental practitioners, Dr Ainsley Toh and Dr Foong Siew Hong.

The acquisitions were made through HSI Nominees A, a subsidiary of Healthsciences International (HSI) which holds the group’s healthcare investments.

Following the acquisition, which is expected to be completed by Oct 30, HSI will have nine dental clinics and two dental supplies companies.

Besides the dental business, HSI also has two clinics in Singapore providing complementary integrative therapies based on Western standards of medical care. HSI, in which New Silkroutes has a 69.35% stake, also operates clinic and pharmacy management systems in Singapore and China.

In a separate filing, New Silkroutes says investor Zhou Bin has agreed to subscribe to 3.1 million new shares at 44 cents, a 12.14% premium to the volume weighted average price of 39.2 cents for all trades done on Tuesday.

The new shares represent 2.06% of the company’s enlarged share capital.
 
New Silkroutes says the net proceeds of $1.35 million will be used for working capital purposes.

Shares in New Silkroutes closed at 40 cents on Tuesday.