Q&M Dental Group (Singapore)’s subsidiary Q&M Aidite International (QMAI) has entered a deal to sell part of its 36 percent stake in Aidite (Qinhuangdao) Technology for S$49 million, the dental chain operator said in a filing to SGX Thursday.
QMAI will retain around 12.25 percent of Aidite, which will allow it to continue to participate in its growth, Q&M said.
The disposal is expected to result in a gain of S$19 million, with proceeds to be used as working capital and for business expansion purposes, Q&M said, adding it also plans to declare a special dividend for shareholders.
“In 2014, Q&M recognized that Aidite had immense growth potential and made a strategic investment. We are happy that the disposal, when completed, will result in a significant return on our investment,” Ng Chin Siau, group CEO of Q&M, said in the statement. “This deal will enable us to realize and unlock the value of most of our interest in Aidite with a significant gain, while retaining a strategic stake.”
Ng added that the proceeds would also assist the company’s ability to look for new investments in China and elsewhere.
The buyers include Suzhou Junlian Xinkang Venture Capital Partnership, Health Advance Ltd., Schroder Adveq Asia Hong Kong I Ltd. and ASP Hero SPV, the filing said.
The deal will require the approval of Q&M’s shareholders at an extraordinary general meeting, the filing said.
After the deal is completed, QMAI will enter a joint venture with Aidite’s other shareholders to manage their relationship, the filing said.
Aidite is mainly engaged in manufacturing zirconium oxide blocks, used to make dental prosthesis and to distribute dental equipment and supplies related to the blocks, the filing said.