Rowsley announced plan to purchase into TMC

"We are already working with Rowsley for the healthcare city project in Johor. If Rowsley becomes our new shareholder, we could pool our resources and grow under one roof,” said Quek.

In July, Rowsley had announced a plan to buy a 70% stake in TMC from Singapore billionaire Peter Lim, who is also the controlling shareholder of Singapore-listed Rowsley. The proposed acquisition’s price tag is around S$1.9bil (RM6bil).

The proposed acquisition will be an all-share deal for Lim’s private vehicle, Sasteria Pte Ltd. Sasteria not only owns the 70% stake in TMC, but is also the owner of Thomson Medical Pte Ltd.

Quek explained that TMC’s proposed Iskandariah Hospital project in Johor was part of the RM5bil Rowsley’s Vantage Bay Healthcare City project.

“The hospital portion belongs to TMC, in which we had planned to build a 500-bed hospital. The remaining area of the healthcare city is owned by Rowsley,” he said.

Quek said for the Iskandariah Hospital, TMC is hoping to secure the final approval from regulators by the first quarter of next year. The hospital is expected to cost RM1.2bil.

He pointed out that the company’s “immediate priority” was to expand its flagship hospital, Tropicana Medical Centre in Kota Damansara. Under the expansion plan, the hospital will add 400 more beds from its current 205 beds. The expansion is expected to cost about RM300mil, which the company aims to finance via internal funds and bank borrowings.

"We are targeting to complete the expansion by end-2020. We hope to start the construction this year,” Quek said.

“Overall, TMC is expected to expand its capacity to 1,100 beds from 205 beds in the next five years,” Quek said.

TMC said its net profit surged 90% to RM11.1mil in the fourth quarter ended Aug 31 from RM5.9mil a year earlier.

Revenue in the quarter was up by 16% to RM39.3mil from RM33.8mil previously.

For financial year 2017 (FY17), TMC posted a 46% jump in net profit to RM26mil from RM17.9mil last year, contributed by a higher patient load and additional bed capacity.

TMC installed more than 40 beds in FY17.

Revenue for the period increased 15% to RM151.7mil from RM131.4mil previously.

The company also announced a higher dividend payout of 0.17 sen a share from 0.15 sen a year ago.

/theSTAR 27-10-2017

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