PETALING JAYA: Poultry and property player Sinmah Capital Bhd is acquiring two properties in for a combined RM27 million as part of its plan to diversify into the healthcare business.
In a filing with Bursa Malaysia, Sinmah said the proposed diversification is part of its long-term growth plan to venture into other revenue-generating businesses, in order to mitigate its reliance on poultry and property businesses.
The group is presently involved in poultry, investment holdings, provision of management services, property development and construction.
“The proposed diversification will provide the group with the opportunity to diversify its earnings by venturing into the provision of healthcare services by owning, constructing and operating hospitals providing medical services. The additional revenue contribution from the provision of healthcare services is expected to contribute positively to the group’s future revenue stream and profitability,” it said.
The group said it has the capacity, capabilities and resources to diversify into the healthcare business and will be engaging with reputable healthcare professionals for guidance on greenfield set-up, operational tie-up, management support and resources sharing for the operations of the new business.
SAH Medical Center Sdn Bhd, a 95%-owned subsidiary of Sinmah Amegajaya Healthcare Sdn Bhd, which in turn is a 70%-owned subsidiary of Sinmah, is acquiring a three-star hotel for RM23 million cash and a six-storey commercial building for RM4 million cash from The Aston Holiday Sdn Bhd. Both properties are located on freehold land in Nilai.
The group intends to redevelop the non-operational three-star hotel into an integrated public-private university hospital, which will encompass a public wing and private wing complemented by other functional components including centres of excellence, specialist consultation suites and other ancillary facilities.
The construction of the hospital is expected to commence in the second quarter of 2019 and completed by the second quarter of 2021, subject to the relevant authorities’ approval.
The estimated development cost of the hospital is about RM58 million while the medical equipment cost is about RM15 million.
Meanwhile, the six-storey commercial building will be refurbished into an administrative office for the hospital and/or a hospital expansion, which will be decided at a later stage.
The proposed acquisition of the two properties will be funded via internally generated funds and/or bank borrowings, and will be completed in the second quarter of 2019.
The proposed diversification is subject to approval from the company’s shareholders. TA Securities Holdings Bhd has been appointed as the adviser for the proposals.
Source: The Sun Daily