DC Healthcare Holdings Berhad, an aesthetic medical services provider specialising in the provision of non-invasive and minimally invasive procedures, today announced the strategic acquisition of I Bella Sdn Bhd (“I Bella”), enhancing its service offerings and market presence.
This acquisition is coupled with a profit guarantee for the financial years ending 31 March 2024 and 2025, affirming confidence in I Bella’s future financial performance.
DC Healthcare has committed to acquiring a 100% equity interest in I Bella for a total purchase consideration of RM70.0 million.
To fulfill this acquisition, the payment structure includes a Cash Consideration of RM35.0 million, of which RM15.0 million will be utilised from the IPO proceeds as per the Proposed Variation whereas the remaining RM20.0 million will be funded through DC Healthcare’s internally generated funds and/or bank borrowings.
In addition, the agreement involves the issuance of 60.3 million new ordinary shares in DC Healthcare. These shares are issued at a price of RM0.58 per share, a slight premium compared to the current share price, underscoring the robust future prospects DC Healthcare envisages post-acquisition.
I Bella, with its strong foothold among Malay customers, is poised to significantly enrich DC Healthcare’s client portfolio, especially in services like facial and skin treatments, and body and face contouring.
For information, the Vendors of I Bella have assured a minimum Profit After Tax (PAT) of RM5.2 million and RM6.2 million which totals up to RM11.4 million for the fiscal years ending 2024 and 2025, respectively, showcasing the Group’s confidence in the sustained growth and potential of I Bella.
In addition to the acquisition, DC Healthcare is announcing a bonus issue of 249,075,000 free warrants as a testament to its commitment to rewarding its shareholders. This initiative will be implemented on the basis of 1 warrant for every 4 existing shares held.
Additionally, the Group is establishing an Employee Share Option Scheme (ESOS) to recognize the significant contributions of its staff, especially those with LCP certification.
As of 21 November 2023, at 12:30 P.M. the share price of DC Healthcare stands at RM0.50 per share, indicating a market capitalisation of RM503.1 million. This reflects the strong market confidence in the Group’s strategic direction and growth potential.
ABOUT DC HEALTHCARE HOLDINGS BERHAD
DC Healthcare Holdings Berhad (“DC Healthcare” or the “Company”) is an established aesthetic medical services provider specialising in the provision of non-invasive and minimally invasive procedures. Their business segments are divided into two services, which are aesthetic services and general medical services.
The Group also sells skincare products under the brands 10 Drs and Le Perfetto. DC Healthcare currently has a presence in the central and southern regions of Peninsular Malaysia.
For more information, visit www.dchealthcareholdings.com.