Medinex buys 4.59% stake in HC Surgical for about S$2.2m

Vivienne Tay

Published Fri, Oct 23, 2020 · 01:00 AM

MEDICAL support services provider Medinex on Friday said it acquired a 4.59 per cent stake in its controlling shareholder HC Surgical Specialists (HCSS) for about S$2.2 million.

Medinex funded its investment in HCSS using internal resources. The investment also took place through a series of market transactions from Oct 9 to 22, it said in a bourse filing.

"The board is of the view that the investment will allow the company to participate in the growth of HCSS and enhance the value for its shareholders, in view of the recent announcements made by HCSS," said Medinex.

These announcements include HCSS's entry into a framework agreement with insurer Prudential to provide health services posted earlier this month, as well as HCSS's acquisition of GMH Endoscopy & Surgery announced in April 2020.

HCSS and its subsidiaries are a medical services group primarily engaged in the provision of endoscopic procedures and general surgery services with a focus on colorectal procedures across a network of clinics in Singapore. Its market value is about S$48.7 million, based on the weighted average price of HCSS shares transacted on Oct 22, Medinex said.

Shares of Medinex last traded at S$0.21 on Tuesday, while HCSS shares closed up 3.2 per cent or S$0.01 to S$0.32 on Thursday. Both firms are listed on the Catalist.