Cengild Medical’s subsidiary acquires stratified property in KL for RM122.34mil

KUALA LUMPUR: Cengild Medical Bhd’s wholly-owned subsidiary, Cengild Sdn Bhd, has entered into a conditional sale and purchase agreement with Sunny Uptown Sdn Bhd for the acquisition of a stratified property in Kuala Lumpur for a cash consideration of approximately RM122.34 million.

In a Bursa Malaysia filing today, Cengild Medical said the property is part of a proposed construction of a 17-storey medical centre building with a total net floor area of 187,507 square feet (sq ft).

“Cengild is proposing to acquire building space with a combined net floor area of 100,442 sq ft together with at least 182 car park bays located within the medical centre building.

“The purchase consideration will be funded through a combination of internally generated funds, bank borrowings and re-allocated initial public offering (IPO) proceeds,” it said.

It said the proposed acquisition would allow the company to further strengthen its position as an independent healthcare provider specialising in gastrointestinal as well as liver diseases and obesity and is in line with the company’s strategy in expanding its medical services in Malaysia.

Meanwhile, Cengild Medical also proposed variation and extension of the timeframe for the utilisation of proceeds raised from the IPO.

“In respect of the proposed variation, reference is made to the utilisation of proceeds from the public issue as disclosed in the company’s IPO prospectus dated March 30, 2022,” it said.

It said the company raised total gross proceeds of RM72.20 million from its IPO and has utilised approximately RM7.65 million of the proceeds while the remaining balance which is yet to be utilised is approximately RM64.56 million.

The company said after due consideration, the board proposes to vary the utilisation of IPO proceeds amounting to approximately RM36.26 million to partially fund the proposed acquisition.

“The board also propose to extend the time for the utilisation of the IPO proceeds for expansion of existing medical centre, establishing new medical centres, working capital and defraying the listing expenses,” it added. – BK