ISEC: (S$0.27) Kicking off M&A with four GPs
- Proposed to acquire four general medical clinics for $13.9m (12x P/E).
- Financing via cash ($7m) and 27.9m new shares (5.4% enlarged share capital) at $0.25 apiece
- Deal will come with a profit guarantee of $1.1m p.a. over a five year period, boosting core earnings by 18%.
- Stock trading at 20x P/E, making it one of the cheapest healthcare stocks under Maybank KE's coverage in Singapore.
- House has a Buy call with TP at $0.40.
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