ACCRELIST’S 95 per cent-owned subsidiary intends to acquire a 60 per cent equity stake in a health management company for 1.5 million yuan (S$280,000), said the Catalist-listed company on Wednesday (Jul 3).
The subsidiary, Accrelist Medical Aesthetics (Hainan), will purchase 1.5 million newly issued and paid-up shares in Accrelist Nanjing, formerly known as Nanjing Yi Chuangyuan Health Management.
Information on Accrelist Nanjing’s book value and net tangible asset value attributable to the sale shares as at Mar 31 are not available as the company “never prepared management accounts and/or financial statements”, said Accrelist, which has business in skincare products, medical aesthetics and electronics solutions.
It added: “There is no open market value of the shares of Accrelist Nanjing as the latter is not publicly traded and no valuation has been carried out in connection with the acquisition.”
The proposed transaction will be funded entirely by Accrelist Medical Aesthetics (Hainan)’s internally available disposable resources, including loans it received from the group.
Following the acquisition, Accrelist’s executive chairman and managing director Terence Tea will be appointed Accrelist Nanjing’s legal representative and general manager for a term of two years.
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Tea said: “Accrelist Nanjing’s foundation and comprehensive offerings provide a solid platform for growth. I am confident that our combined expertise and market knowledge will enable us to achieve significant milestones and create long-term value for our shareholders.”
The primary scope of business of Accrelist Nanjing ranges from remote health management services and traditional Chinese medicine to non-medical health services.
Prior to the acquisition, the company was wholly owned by Dong Qi Lin. The group said that Dong has no direct or indirect interests in the group and is not related with any of the group’s directors, controlling shareholders and their respective associates.
Additionally, Dong, Accrelist Nanjing and Accrelist’s subsidiary also entered into a supplementary agreement on Tuesday.
As part of the agreement, Dong and the subsidiary will transfer 2 per cent and 3 per cent, respectively, from their holdings of Accrelist Nanjing’s new share capital to a third-party service provider.
The new share capital of Accrelist Nanjing amounts to 2.5 million after combining the newly issued 1.5 million shares to the existing one million shares.
Accrelist noted that the disposal of shares is intended as a one-off management fee paid to the third-party service provider in exchange for services it had rendered to both Accrelist Nanjing and Accrelist Medical Aesthetics (Hainan) that had been “instrumental” to the acquisition.
Following the disposal, Dong will hold a 38 per cent stake in Accrelist Nanjing, while the subsidiary will own 57 per cent.
Shares of Accrelist were untraded on Tuesday. They closed flat at S$0.039 on Monday.
