Q&M acquires 60% stake in Penang’s Smilebay Dental Clinics

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Singapore-listed Q&M Dental Group said it had reached a deal to acquire a 60 per cent stake in Smilebay Dental Clinics, that operates a chain of six dental clinics in Penang, Malaysia, for RM 12.29 million ($4.4 million).

This marks the latest in a series of acquisitions by Q&M, one of the largest private dental healthcare groups in Singapore.

Earlier this month, the company had announced that it was expanding to China by acquiring a controlling stake in three dental clinics in Liaoning province for 12.2 million yuan (S$2.65 million) in cash.

Last month, Q&M Dental Group had announced the acquisition of eight dental clinics across Singapore for S$20.3 million. That deal led to the company paying S$10.85 million in cash and S$9.45 million in shares.

In April, the company had reached a deal to buy TP Dental Surgeons for S$28.6 million ($21.5 million). Here it had paid S$18 million in cash and S$10.6 million through the issuance of shares in Q&M at an issue price of S$0.70668 per share for TP Dental Surgeons that was owned by five dental practitioners – Dr Hwang Yee Cheau, Dr Phua Tin Cock, Dr Tng Thiam Huat, Dr Ngan Kee Leong and Dr Chin Yee Fatt.

The latest Penang deal sees the company entering into deals with Dr Yong Peng San, Tong Hiew Yu, Dr Tan Pui Ling and Dr. Lim Sze Ming to collectively to acquire 60 per cent of the shareholding in Yong Dental Sdn Bhd, Smilebay Dental Sdn Bhd and Smilebay (BW) Sdn Bhd.

As per the deal terms, about RM 6.8 million will be paid in cash, while the remaining RM 4.5 million will be paid with Q&M shares at 72 cents each.

“The proposed acquisition is in line with the company’s plan to continue the expansion of its main dental business in Malaysia and allows the company to add six fully operational clinic in Penang, Malaysia,” the company said in a regulatory filing.

Dr Yong, Dr Tan and Dr Lim have each agreed to sign a 12-year full time service agreement with the company. Dr Yong undertakes to procure all five existing dentists (excluding Dr Yong, Dr Tan and Dr Lim) to each sign a six-year full time service agreement with the company, the regulatory filing added.

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