Q&M Dental

Q&M Dental: Group posted several updates on its acquisition spree in China over the past one week. Firstly, the company established a $200m multicurrency MTN programme which can help to finance some of their purchases. Secondly, the company entered into a MOU to acquire 51% of Rongcheng City Shidao Meichen Hospital and Rongcheng City Meichen Stomatology Polyclinic for Rmb17.9m. Q&M will pay for this deal entirely using Q&M shares and the shares have a five years moratorium. Similar to all the previous deals, the sellers will provide a profit guarantee over the next 12 years, which will cover Q&M’s purchase price. There was also some progress in the purchase of a 60% stake in Aoxin Stomatology Group. Firstly, RMB10m worth of Q&M shares will be issued as part of the purchase consideration payable (total of RMB108m), with a two-year sale moratorium attached starting from the date of allotment. In all, the Aoxin acquisition is progressing smoothly and Q&M has three recent deals on the table now, 1) Stomatology hospitals in Dandong and Donggang, 2) Qinhuangdao Aidite High Technical Ceramic and 3) Rongcheng City hospital and polyclinic. Voyage has an Increase Exposure with $0.42 TP.