KUALA LUMPUR (Oct 23): Healthcare services firm Metro Healthcare Bhd (KL:METRO) is moving to diversify beyond its obstetrics and gynaecology base with the proposed acquisition of RMC Specialist Sdn Bhd, a company owned by its executive vice-chairman and major shareholder, Dr Tay Swi Peng @ Tee Swi Peng, paving the way for the group’s entry into the multi-disciplinary hospital segment.
In a filing with Bursa Malaysia on Thursday, Metro said it had entered into a share sale agreement with Tay to acquire 100,000 ordinary shares, representing the entire equity interest in RMC Specialist, for RM320,000 in cash.
RMC Specialist plans to develop a four-acre parcel of commercial land in Bandar Rimbayu, Selangor, into a multi-disciplinary hospital with a total built-up area of 340,000 sq ft.
The first phase will feature 120 beds and five operating theatres, with construction expected to begin in the second quarter of 2026 and be completed by the fourth quarter of 2027.
“The proposed acquisition represents a strategic expansion of the company’s presence in Malaysia’s healthcare sector, in line with the company’s long-term growth objectives,” Metro said. “Once operational, the proposed hospital is expected to enhance the group’s revenue and earnings.”
RMC Specialist had in May acquired the land from Bandar Rimbayu Sdn Bhd for RM33.63 million. As at Oct 17, it had paid RM1.68 million, with the remaining RM31.95 million to be settled within 24 months.
Tay has advanced RM2.39 million to the company and will inject an additional RM913,820 before completion of the acquisition. These advances are interest-free and will be repaid in 12 monthly instalments after completion.
Metro said the RM320,000 price tag took into account RMC Specialist’s audited net assets of RM93,396 as at July 31, 2025, and the difference between the market value and purchase price of the land, which was appraised at RM34 million by Henry Butcher Malaysia.
The group said it will fund the purchase entirely through internally generated funds.
RHB Investment Bank Bhd has been appointed as the principal adviser for the exercise, while DWA Advisory Sdn Bhd will act as independent adviser to evaluate the transaction for non-interested directors and shareholders.
The acquisition will require the approval from the remaining shareholders of Metro Healthcare at an extraordinary general meeting to be convened, at a date to be determined later.
Tay, who holds a direct stake of 43.5% and an indirect 5% interest via Country Range Sdn Bhd, is deemed an interested party and will abstain from all deliberations and voting on the proposal.
His spouse, non-independent non-executive director Dr Kong Lan Moon, who owns a 19.5% stake, is also an interested major shareholder.
Metro Healthcare, which operates a network of obstetrics, gynaecology and in-vitro fertilisation (IVF) centres, was listed on the ACE Market in November 2024. Its shares closed unchanged at 23 sen on Thursday, valuing the company at RM225.1 million.