KUALA LUMPUR (April 14): Loss-making confinement centre and aesthetic clinic operator LYC Healthcare Bhd (KL:LYC) said the suit from one of its key partners, aesthetic doctor Dr Dinesh Kanasen, on alleged oppressive conduct at one of its units has been dropped.
The suit against its units, LYC Beauty & Wellness Sdn Bhd and LYC Dental & Aesthetic Holdings Sdn Bhd, for several court orders, including the winding-up of LYC Beauty & Wellness was withdrawn with liberty to file afresh, according to a bourse filing on Tuesday.
The reason behind the withdrawal was not disclosed in the filing.
The suit, filed in November last year, centred on alleged oppressive conduct in LYC Beauty & Wellness, a subsidiary formed after LYC Healthcare acquired Tao Global Ventures Sdn Bhd in 2022 for RM4 million, which came with a two-year profit guarantee.
Tao Global Ventures is the vehicle that owns medical aesthetic clinic Dr D Clinic and beauty and wellness centre iBody by Dr D, both founded by Dinesh. LYC holds 60% of LYC Beauty & Wellness, while Dinesh holds the remaining stake.
Dinesh alleged his interest as a shareholder in LYC Beauty & Wellness was being oppressed or disregarded by way of how the unit was being managed.
Aside from the sought winding-up order, Dinesh also sought a declaration from the court that actions that have, or may, be taken by LYC Healthcare, LYC Dental & Aesthetic, LYC managing director Sui Diong Hoe and LYC chief executive officer of project management division Soh Hoo Hong, would unfairly disadvantage him as a shareholder.
Dinesh also sought an application to declare a 2022 service agreement between Tao Global Ventures and his wife, Dr Sarahanna Selvarajah, as invalid from the very beginning. He also sought damages, equitable compensation and indemnity costs against the respondents.
LYC Healthcare, formerly known as Mexter Technology Bhd, has been in the red for over a decade.
In the latest nine months ended Dec 31, 2025 (9MFY2026), the company logged a wider net loss of RM12.88 million, compared with RM8.69 million a year earlier, as revenue dropped 17.3% year-on-year to RM100.71 million.
It triggered Guidance Note 3 (GN3) criteria in June last year after its shareholders’ equity fell to 25% or less of its issued capital, requiring it to submit a regularisation plan.
Shares in LYC Healthcare ended unchanged at 1.5 sen, valuing the company at RM11.1 million.