- Proposed acquisition of 65% equity interest in Marzan Health Care Inc. will springboard Group’s expansion in the Philippines
- Well-positioned to capture the growing demand for precision medicine arising from greater affluence amongst the Philippine populace
Clearbridge Health Limited (“Clearbridge” or the “Company” and together with its subsidiaries, the “Group”) (明策集团), a healthcare company with a focus on the delivery of precision medicine in Asia, today announced that it has entered into a conditional share purchase agreement with several parties (collectively, the “Vendors”) to acquire 65% of the common shares of Marzan Health Care Inc. (“Marzan Health Care”), for PHP69,615,000 (approximately S$1.86 million) (the “Proposed Acquisition”).
Upon completion of the Proposed Acquisition, Clearbridge will hold a 65% interest in Marzan Health Care, while the remaining 35% will be held by its founders, Edison B. Marzan and Visitacion Magtibay.
Additionally, following completion of the Proposed Acquisition and contingent on approval of the Philippines Securities Exchange Commission, Clearbridge intends to enter into a subscription agreement to subscribe for such number of cumulative, non-voting, redeemable preferred shares in Marzan Health Care at the price of PHP1.00 per share for a total subscription price of approximately PHP25,000,000 (approximately S$0.7 million) in cash, to increase the paid-up capital of Marzan Health Care to the equivalent of US$2.5 million (approximately S$3.3 million) (the “Proposed Subscription”). The preferred shares have a fixed dividend rate of 2% above the prime lending rate, and will be payable on a semi-annual basis.
The proposed transactions will be funded by proceeds from the Company’s initial public offering in December 2017 and/or bank borrowings.
Marzan Health Care is a comprehensive ambulatory medical centre founded in March 2015 to provide affordable health care to patients in the Philippines. The Group now owns and operates the Marzan Health Care Diagnostic Centre in Manila, which provides a wide range of services including pathology services, imaging diagnostics, dental care, as well as dialysis and renal care.
This Proposed Acquisition comes barely a month after Clearbridge’s initial public offering in December 2017, and marks another step in the Group’s plans to expand its network of medical clinics and centres in the region. Clearbridge currently owns and operates medical clinics/centres in Singapore and Hong Kong, in addition to providing laboratory testing services, and holds strategic equity stakes in precision medical technology companies.
Mr Jeremy Yee, Executive Director and Chief Executive Officer of Clearbridge, said: “The Philippines remains a vastly untapped market for the provision of precision medical healthcare services. We see huge potential for Clearbridge to establish a strong foothold in the precision medicine space on the back of rising affluence amongst a significant segment of the populace. This acquisition will provide us with a suitable platform to expand our footprint in the Philippines, which is in line with the growth plans that we articulated during our listing exercise in December last year.
“Moreover, the acquisition will also allow Clearbridge to rapidly scale up its presence in the Philippines as Marzan Health Care already possesses the required licenses to provide a wide range of medical services. We will also leverage Marzan Health Care’s existing network to distribute Clearbridge’s suite of precision medical products and services which will generate revenue synergies for the Group.”