By Kristie Neo | Posted: 27 December 2012 SINGAPORE: SGX-listed Q&M Dental Group has launched a takeover bid of S$22.65 million for catalist-listed Singapore Medical Group (SMG).The company said it is acquiring a 72.57 per cent stake in SMG at 13.23 cents per share.The proposed deal will also trigger a mandatory general offer for the remaining shares of SMG.Q&M said the acquisition will jump start its expansion plans in the region.It will be raising S$16.77 million by placing out 55 million of its shares at about 30.5 cents a piece to fund part of the acquisition.It will also use internal funds and current credit lines to fund the remaining portion of the takeover.Q&M also said it will purchase SMG's shares at a 41 per cent premium over its last trading price at about 13 cents a share. The 72.6 per cent stake will be acquired from Mr Felix Huang and Dr Xiaoyan Baumann Geb Bi, who are two substantial shareholders of SMG.SMG currently operates 15 medical clinics, offering specialist services in areas such as eye and aesthetics, orthopaedic and sports, and critical illnesses.Dr Ng Chin Siau, CEO of Q&M Dental Group said: "It's a very good platform for Q&M. If Q&M has to start (expanding) from scratch, building one by one, it will take us so many years. SMG has spent so many years building up the brand and the group practice, with a lot of them who are leaders in their respective field. I would say it's a very good buy."Q&M said it plans to integrate SMG's medical services in its 55 locations islandwide.The proposed deal is expected to complete in the second quarter of 2013.Q&M's stock rose 9.8 per cent to end at 33.5 Singapore cents, after trade resumed on Thursday afternoon.
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