KUALA LUMPUR (June 20): PRG Holdings Bhd is in talks with the relevant parties to extend the deadline for the proposed purchase of healthcare services provider Roopi Medical Centre Sdn Bhd for RM7.29 million and related properties from Linecom Corp Sdn Bhd for RM11 million cash.
In a filing with Bursa Malaysia yesterday evening, PRG said the conditions precedent under the share sale agreement (SSA) and sales and purchase agreement (SPA) have not been fulfilled within the stipulated period that ends today (June 19).
“Pursuant thereto, the parties to the SSA and properties SPA are in the midst of discussion on amongst others, an extension of time for the fulfilment of the said conditions precedent,” said the company’s filing.
If the proposal falls through, the extension could delay PRG’s plan to diversify its business into healthcare services in the Klang Valley. Located in Petaling Jaya, Roopi Medical Center specialises in providing healthcare services to women and expectant mothers.
“In the event the parties are not able to agree upon the proposed extension, the parties to the SSA and Properties SPA would have, ipso facto, been entitled to terminate the SSA and Properties SPA by issuing a notice of termination to the other party and thereafter, the SSA and Properties SPA shall be of no further effect,” PRG explained.
PRG said it will make the relevant announcement to Bursa Malaysia once both parties reached a definitive agreement to extend the fulfilment of the conditions precedent.
Early this year, PRG had via PRG Healthcare Sdn Bhd announced its intention to venture into the healthcare services provider by acquiring the entire equity interest in Roopi Medical Center.
In addition, PRG said its wholly-owned PRG Asset Sdn Bhd has inked the properties SPA to acquire terrace shop properties related to Roopi Medical Center for RM11 million.
Altogether, PRG’s planned venture into the healthcare services is expected to cost RM18.3 million.
PRG shares were not traded yesterday. It was last settled at 86 sen, valuing it at a market capitalisation of RM260.63 million. — theedgemarkets.com