Monday, August 8, 2016

Singapore Medical Group

Singapore Medical Group: Acquiring remaining stake in profitable health screening associate
-Acquiring 61.9% remaining stake in associate Lifescan Imaging for $8.5m,
-This will be funded by 33.4m new shares
-Lifescan is a diagnostic imaging business that operates Pacific Cancer Centre and Novena Radiology
-Lifescan turned around to a net profit of $0.348m in 1H16 vs. SMG’s $0.633m
-The price implies a 12.3x P/E, and is at an 11.6% discount to independent valuation by Deloitte
-Health screening is expected to contribute meaningfully to future earnings

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