MAINBOARD-LISTED New Silkroutes Group&rsquo s indirect subsidiaries have agreed to sell their stake in six dental clinics and a company to The Dental Hub, a 60 per cent-owned indirect subsidiary of the Catalist-listed Quantum Healthcare, for S$4.45 million.

 

In separate bourse filings, the companies disclosed that the parties have entered into an agreement to transfer ownership of the clinics &ndash all branches already bearing the name The Dental Hub &ndash and Dentaltrendz on Monday (Oct 3).

 

Dentaltrendz provides human resources and administrative services. The clinics are the ones located in Alexandra, Bedok, Boon Lay, Telok Blangah, West Coast and Yew Tee.

 

New Silkroutes Group owns a company that holds 81.28 per cent of the total issued and paid-up capital of Healthsciences International, which owns HSI Dental. 

 

HSI Dental, in turn, holds 70 per cent of the total issued and paid-up capital of Dentaltrendz and six other companies that operate the six clinics. Dental practitioner Keith Alan Liew owns the other 30 per cent.

 

New Silkroutes Group said it is currently in consultation with Singapore Exchange Securities Trading to understand if shareholders&rsquo approval is required for the proposed transaction.

 

But it meanwhile stated that the move is part of a business transition into new businesses that can &ldquo enhance income streams&rdquo .

 

&ldquo The proposed transaction will streamline the group&rsquo s operations and facilitate the group diversification into new businesses,&rdquo it said, adding that its board is of the view that the sale is in the best interest of the company and its shareholders.

 

Quantum Healthcare, meanwhile, said the deal is related to the announcement made by QT Vascular on Jun 19. At that time, QT Vascular said it is in advanced negotiations to acquire shares in certain dental businesses.

 

QT Vascular, which had its shares delisted on Jul 29, has since become a wholly-owned subsidiary of Quantum Healthcare.

 

Quantum Healthcare added that the S$4.45 million consideration was arrived at after negotiations on an arm&rsquo s length and a willing-buyer and willing-seller basis.

 

It took into account the value of the vendors&rsquo business with reference to the unaudited pro forma combined gross revenue of about S$3.6 million and profit before tax of S$435,000 for the financial period between Jul 1, 2021 and Mar 31, 2022.

 

The agreement was also arrived at after considering the businesses&rsquo valuations, which ranged from S$4.9 million to S$5.5 million as at Jun 30, 2021.

 

Quantum Healthcare said a substantial portion of the consideration will be funded through external financing to be obtained from a bank.