PETALING JAYA: Sunzen Biotech Bhd has entered into a share sale agreement with Lee Peng Hwa and Lay Lee Chin (vendors) for the acquisition of 70,000 ordinary shares, representing 70% of the equity interest of Eye Nation Medical Sdn Bhd for a total cash consideration of RM6.37 million.
As at Oct 1, Eye Nation has an issued and paid-up share capital of RM100,000 comprising 100,000 ordinary shares. Upon completion of the acquisition, Eye Nation will become a 70% owned subsidiary of Sunzen.
Eye Nation was incorporated in Malaysia on Nov 6, 2003 as a private limited company. Its principal activity is trading in diagnostic equipment and related products in the ophthalmic industry. Pursuant to the acquisition, the vendors have
agreed to guarantee that Eye Nation shall make an audited profit after tax of RM2.6 million for two financial years, beginning from July 1, 2024 until June 30, 2026.
Eye Nation’s audited profit after tax for the financial period from July 1, 2024 to June 30, 2025 shall not be less than RM1.3 million; and audited profit after tax for the financial period from July 1, 2025 to June 30, 2026 also shall not be less than RM1.3 million.
The purchase price of RM6.37 million was arrived after taking into consideration commercial factors such as consolidated profit after tax of RM900,848 over revenue of RM8,038,599 for the financial year ended Dec 31, 2023 and total net asset of RM6,592,976 based on the latest audited financial statements of Eye Nation; historical financial performance and future prospect of Eye Nation; and the RM2.6 million profit guarantee secured from the vendors.
Sunzen Group managing director Teo Yek Ming said the acquisition provides Sunzen with an opportunity to expand its business into the ophthalmic industry,, offering immediate access to new markets in Malaysia through Eye Nation’s extensive experience and specialised knowledge.
“Sunzen can leverage these connections to enter new markets and tap into Eye Nation’s strong relationships with healthcare providers, such as hospitals and medical professionals, as well as with product principals, to strengthen our position in the ophthalmic industry,” he added.
