Quadria Capital Backs Malaysian Diagnostics Provider Lablink

DealStreetAsia, 23 Jan 18 Online

Quadria Capital backs Malaysian diagnostics provider Lablink

Arbar Mir, Managing Partner and Co-Founder of Quadria Capital

By Ishita Russell

Asia-focused healthcare investor Quadria Capital today announced its investment in Malaysian diagnostics provider Lablink (M) Sdn Bhd. The financial details of the deal were not disclosed.

According to a company statement, the investment comes as part of the private equity firm’s strategy to expand into the medical laboratory services sector. It marks Quadria Capital Fund L.P.’s eighth investment in Southeast and South Asia since its launch in 2015.

“We believe that the region’s diagnostics industry is ripe for consolidation and Lablink is well positioned to become a leading pan-Southeast Asian diagnostics provider. Its ambition dovetails with Quadria Capital’s investment philosophy of supporting healthcare businesses that are focused on delivering quality care across the region,” said Quadria Capital managing partner and co-founder Abrar Mir.

“Our partnership with Lablink will allow the company to leverage Quadria Capital’s experience in growing diagnostics providers across the region, as well as other synergistic opportunities arising from our portfolio and network,” he added.

Kuala Lumpur-based Lablink is a subsidiary of private healthcare provider KPJ Healthcare Berhad; the latter acquired it in 1991 to manage all the hospital laboratories within the KPJ Group. Lablink currently provides diagnostic services to the KPJ Group of hospitals and other healthcare providers in Malaysia.

In July last year, Quadria Capital had closed an investment in FV Hospital (FV) in Vietnam and also acquired a significant stake in MWH Holdings in Singapore, the 1

holding company for the Singapore Heart, Stroke and Cancer Centre.

In April 2017, Dabur family-owned HealthCare at Home had also raised $40 million from Quadria Capital.

Founded in 2010 by former Religare executives Amit Varma and Abrar Mir, health sector-focused Quadria has invested in over 16 companies in the Asia Pacific region through its three funds. It currently has around $1.5 billion of assets under management. https://www.dealstreetasia.com/stories/pe-firm-quadria-capital-malaysian-diagnostics- provider-lablink-90938/

The Edge Markets, 23 Jan 18 Online

KPJ's diagnostics unit Lablink sees entry of PE firm Quadria Capital

By Sangeetha Amarthalingam

KUALA LUMPUR (Jan 23): Singapore-based private equity firm Quadria Capital Investment Management Pte Ltd is investing RM119.92 million to take up a 49% stake in KPJ Healthcare Bhd's diagnostics unit, Lablink (M) Sdn Bhd.

The investment is undertaken via KL Kappa Sdn Bhd, which inked a subscription and share purchase agreement (SSPA) with Lablink and Kumpulan Perubatan (Johor) Sdn Bhd (KPJSB). KPJ owns Lablink via KPJSB.

"The proposed SSPA marks the beginning of the partnership between KPJ and Quadria Capital to grow Lablink's pathology and diagnostics businesses in Malaysia and explore new growth markets in Southeast Asia to become the region's leader in pathology and diagnostics services," KPJ said in a Bursa Malaysia filing today.

Quadria Capital, regulated by the Monetory Authority of Singapore, manages Quadria Capital Fund LP and other funds with assets under management exceeding US$1.5 billion and investments in 18 companies across the Asia-Pacific region.

Lablink offers pathology and diagnostic services to the KPJ Group of hospitals and other healthcare providers in Malaysia.

KPJ said the proposed tie-up is in line with its plan to expand the pathology and diagnostics businesses of Lablink to locations where private healthcare is in demand.

It would also drive Lablink's mission to be the leading pathology group in the region, and enhance shareholders' value, it added.

KPJ shares dipped half sen or 0.51% to settle at 98 sen today, for a market capitalisation of RM4.17 billion. https://www.theedgemarkets.com/article/kpjs-diagnostics-unit-lablink-sees-entry-pe- firm-quadria-capital

Nikkei Asian Review, 24 Jan 18 Online

MALAYSIA STOCKS TO WATCH: Crest Builder, Green Packet Likely In Focus On Wednesday

By Chong Sin Hao and Alexander Winifred

KUALA LUMPUR (Jan 24) -- Here are the stocks to watch on Wednesday

*Crest Builder: secures a residential buildings construction job worth MYR328.80 million from Perdana ParkCity.

*Green Packet: signs contract with MYTV Broadcasting to supply television set-top boxes for up to MYR272 million.

*Samchem Holdings: evaluating listing of 63.25%-owned Samchem Sphere JSC on Vietnams stock exchange.

*KPJ Healthcare: plans to sell 49% stake in Lablink (M) to KL Kappa for MYR119.92 million.

*Cabnet: secures subcontract for Johor Baru apartment development worth MYR7 million.

*Axis REIT: 4Q net profit up nearly 82% on-year at MYR44.09 million, revenue flat at MYR42.42 million.

*IGB REIT: 4Q net profit up 66.6% on-year to MYR117.1 million, revenue rises 6.9% to MYR134.4 million.

*Caring Pharmacy Group: 2Q net profit rises 55% to MYR4.27 million, revenue gains 8% to MYR123.45 million.

*SWS Capital: 1Q net profit falls 33.4% on-year to MYR1.04 million, revenue flat at MYR32 million.

*7-Eleven Malaysia Holdings: Berjaya Assets buy another 1% stake in company for MYR16.84 million.

*Dnonce Technology: chief executive Law Kim Choon sells 24.89% stake in company.

*DRB-Hicom: unit Proton Holdings terminates equity joint venture contract with Goldstar Heavy Industrial.

*IJM Corporation: aims to secure new orders worth MYR2.5 billion - MYR3.0 billion in next fiscal year.

*Mah Sing Group: plans to launch new property projects totaling MYR2.2 billion.

*AirAsia: plans to add 30 aircraft in 2018 on strong demand, reports Reuters citing chief executive Tony Fernandes.

*JHM Consolidation: extraordinary general meeting on proposed acquisition at 11:00 am.

*Fraser & Neave: media briefing post annual meeting at 11:45 am.

*Serba Dinamik Holdings, Datasonic Group, Eco World Group of Companies, Thong Guan Industries, Sime Darby Plantation, Axiata Group, Karex, Yong Tai, Hock Seng Lee, Econpile Holdings, Axis REIT, Cahya Mata Sarawak: to hold corporate presentation at Invest Malaysia conference. https://asia.nikkei.com/Markets/Nikkei-Markets/UPDATE-MALAYSIA-STOCKS- TO-WATCH-Crest-Builder-Green-Packet-Likely-In-Focus-On-Wednesday

The Edge Markets, 23 Jan 18 Online

KPJ, DiGi.Com, IGB REIT, Axis REIT, Caring Pharmacy, TH Heavy, Hengyuan, Seacera, Crest Builder, Pos Malaysia, Lotte Chemical Titan, Samchem, DRB-Hicom, Asiamet, Green Packet and Cabnet Holdings

KUALA LUMPUR (Jan 23): Based on corporate announcements and news flow today, stocks in focus on Wed (Jan 24) may include: KPJ Healthcare Bhd, DiGi.Com Bhd, IGB Real Estate Investment Trust, Axis Real Estate Investment Trust, Caring Pharmacy Group Bhd, TH Heavy Engineering Bhd, Hengyuan Refining Co Bhd, Seacera Group Bhd, Crest Builder Holdings Bhd, Pos Malaysia Bhd, Lotte Chemical Titan Holding Bhd, Samchem Holdings Bhd, DRB-Hicom Bhd, Asiamet Education Group Bhd, Green Packet Bhd and Cabnet Holdings Bhd.

Singapore-based private equity firm Quadria Capital Investment Management Pte Ltd is investing RM119.92 million to take up a 49% stake in KPJ Healthcare Bhd's diagnostics unit, Lablink (M) Sdn Bhd.

DiGi.Com Bhd's net profit fell 3.9% to RM360.08 million in the fourth quarter ended Dec 31, 2017 (4QFY17) from RM374.63 million a year ago, on higher finance cost from adverse fair value changes on interest rate swaps of RM12 million and settlement costs of RM6 million.

It posted service revenue of RM1.51 billion, which was down 2.7% year-on-year (y-o- y).

Earnings per share was lower at 4.63 sen in 4QFY17 compared with 4.82 sen in 4QFY16. Quarterly revenue also slipped 1.5% to RM1.64 billion from RM1.67 billion a year ago.

Despite a weak quarterly performance, DiGi declared a fourth interim dividend of 4.6 sen per share totalling RM358 million for the financial year ended Dec 31, 2017 (FY17), payable on March 23.

IGB Real Estate Investment Trust's net property income (NPI) rose 4% to RM95.19 million in its fourth quarter ended Dec 31, 2017 (4QFY17), from RM91.48 million a year ago as rental income improved.

The group's revenue rose 7% year-on-year (y-o-y) to RM134.35 million from RM125.65 million, as gross rental income grew 8% to RM105.8 million from RM97.8 million.

It announced an income distribution of 95% of its distributable income for the second half ended Dec 31, 2017 (2HFY17), which amounted to RM172.1 million or a distribution per unit (DPU) of 4.9 sen, to be paid on Feb 28.

Axis Real Estate Investment Trust's (Axis REIT's) net property income (NPI) for the fourth quarter ended Dec 31, 2017 (4QFY17) slid 1% to RM35.31 million from RM35.61 million a year ago, as realised property income declined marginally.

Realised property income came in at RM41.91 million during the quarter versus RM42.23 million a year ago.

Income available for distribution for the quarter came in at RM22.52 million versus the year ago's RM23.23 million.

The REIT proposed a final distribution per unit (DPU) of 0.92 sen, which represents 99.86% of income available for distribution from performance of properties for the period Nov 16 to Dec 31, 2017. The DPU is payable on Feb 28 this year.

Caring Pharmacy Group Bhd's net profit jumped 55% to RM4.27 million in its second quarter ended Nov 30, 2017 (2QFY18), from RM2.76 million in the previous year, as revenue strengthened while gross profit margin rose.

Earnings per share rose to 1.96 sen per share in the quarter from 1.27 sen per share in 1QFY17.

Quarterly revenue rose 8% year-on-year to RM123.45 million from RM113.86 million, which it said was mainly due to higher sales generated from existing outlets "due to aggressive and extensive promotional campaigns launched".

TH Heavy Engineering Bhd is in the final stages of negotiations with Yinson Energy Sdn Bhd for the latter to take over TH Heavy's floating production storage and offloading (FPSO) vessel charter agreement with JX Nippon Oil & Gas Exploration (Malaysia) Ltd.

The offshore fabrication and marine services company, 29.81%-owned by Lembaga Tabung Haji, was responding to a recent report that said the proposed JX Nippon contract novation could be scuppered by TH Heavy's growing legal issues.

TH Heavy chief executive officer Suhaimi Badrul Jamil said TH Heavy will be seeking its shareholders' approval for the proposed JX Nippon contract novation upon finalising the salient terms of the agreement to be entered into between TH Heavy, Yinson and JX Nippon at an extraordinary general meeting (EGM) to be convened. 7

Hengyuan Refining Co Bhd has secured US$430 million (RM1.7 billion) financing facilities from three banks to partly refinance its existing term loan and its planned capital expenditure (capex).

The bilateral agreements were signed with Ambank (M) Bhd Labuan Offshore Branch, China Construction Bank (Malaysia) Bhd (CCB) and Maybank International Labuan Branch.

The facilities consist of a term loan and a revolving credit line. The term loan will be used to refinance the company's existing term loan and planned capex, while the revolving credit facility is for working capital.

Seacera Group Bhd is now qualified to participate in government tenders allocated for bumiputera companies, after being granted bumiputera-controlled public listed company status by the government.

To qualify for the status, the company is required to maintain a minimum of 35% of its voting rights by bumiputera shareholders.

Crest Builder Holdings Bhd has bagged a RM328.8 million contract to build two blocks of 40-storey residential apartments and a car park in Desa Parkcity.

The project was awarded to its unit Crest Builder Sdn Bhd by Perdana ParkCity Sdn Bhd.

Crest Builder said the 33-month contract, which starts in February 2018, is expected to contribute positively to its earnings for the financial year ending December 31, 2018 and onwards.

Pos Malaysia Bhd has appointed Al-Ishsal Ishak, 49, as its group chief executive officer effective from Feb 2 after the resignation of its former chief Datuk Mohd Shukrie Mohd Salleh that had sparked some selling pressure on the postal group's shares.

Mohd Shukrie had resigned from the group on Dec 11, 2017.

Additionally, Datuk Azlan Shahrim, who had been acting group CEO will also cease the position and continue as group chief operating officer, postal & courier of Pos Malaysia.

Lotte Chemical Titan Holding Bhd (LCT) has signed a deal with one of its biggest suppliers, Abu Dhabi National Oil Company (Adnoc), for the purchase of refined products and paraffinic naphtha.

Its wholly-owned subsidiary Lotte Chemical Titan (M) Sdn Bhd (LCTM) has signed the three-year sales contract effective Jan 1, 2018 till Dec 31, 2020 with Adnoc today.

According to the contract, pricing will be based on market price as at loading month, while the estimated quantity to be supplied to LCTM will be between 600,000 tonnes 8

and one million tonnes per year.

Chemical distributor Samchem Holdings Bhd is exploring the possibility of listing its indirect 63.25%-owned subsidiary Samchem Sphere JSC on the Ho Chi Minh Stock Exchange.

The proposed listing will enable it to capitalise on the fast-growing Vietnamese economy and the potential growth of the industrial chemical sector there.

Samchem said a corporate adviser licensed in Vietnam has been appointed to evaluate and advise on the proposed listing.

DRB-Hicom Bhd's subsidiary Proton Holdings Bhd has terminated its equity joint venture (JV) contract with China's Goldstar Heavy Industrial Co Ltd to produce and sell Lotus cars in China.

Lotus Group International Ltd has also issued a termination letter to Goldstar.

DRB-Hicom said the contract, signed in 2015, was terminated because the JV company Goldstar Lotus Automobile Co Ltd had failed to obtain the required manufacturing licence in China in time.

Asiamet Education Group Bhd said it has obtained valuation reports for all six assets it has put up for sale, including its main campus in Cheras, Selangor.

Asiamet is also still considering various options available to the company, it said in a filing to Bursa Malaysia today, clarifying an article by The Edge weekly in its Jan 22- 28 edition.

The weekly had reported that the group is selling all six of its assets in Selangor, Perak, Sabah and Kelantan as part of Asiamet’s asset-light policy, which could fetch as much RM135 million.

Green Packet Bhd has bagged a contract to supply and assemble DVB-T2 (T2000) set-top boxes to television broadcasting company MYTV Broadcasting Sdn Bhd.

However, Green Packet did not disclose the contract value except to say that it will depend on the issuance of purchase orders by MYTV.

This confirmed The Edge Financial Daily's report, quoting sources, on Jan 18 that Green Packet had bagged a deal to supply set-top boxes to MYTV, which will help the communication and technology services firm become profitable again. The deal is said to be worth RM300 million.

Cabnet Holdings Bhd has won a RM7 million contract to supply and maintain security systems at a commercial building in Johor Bahru. The contract was awarded to its wholly-owned subsidiary Cabnet Systems (M) Sdn Bhd by Potensi Hijau Sdn Bhd.

The contract involves the supply, installation, testing, commissioning and 9

maintenance of the SMATV, CCTV, lift access, door access, vehicle access, intercom and FTTH systems for the building developed by Trident Success Sdn Bhd. http://www.theedgemarkets.com/article/kpj-digicom-igb-reit-axis-reit-caring- pharmacy-th-heavy-hengyuan-seacera-crest-builder-pos

Reuters, 23 Jan 18 Online

BRIEF-Kpj Healthcare Says KL Kappa To Subscribe To New Shares & Some Exisitng Shares From Unit

* KL KAPPA SDN TO SUBSCRIBE TO NEW SHARES & TO BUY SOME EXISITNG SHARES IN LABLINK (M) SDN FROM UNIT FOR 119.9 MILLION RGT Source text: (bit.ly/2n39rAZ) https://www.reuters.com/article/brief-kpj-healthcare-says-kl-kappa-to-su/brief-kpj- healthcare-says-kl-kappa-to-subscribe-to-new-shares-some-exisitng-shares-from-unit- idUSFWN1PI0D6

Yahoo! Singapore, 23 Jan 18 Online

BRIEF-Kpj Healthcare Says KL Kappa To Subscribe To New Shares & Some Exisitng Shares From Unit

Jan 23 (Reuters) - Kpj Healthcare Bhd: * KL KAPPA SDN TO SUBSCRIBE TO NEW SHARES & TO BUY SOME EXISITNG SHARES IN LABLINK (M) SDN FROM UNIT FOR 119.9 MILLION RGT Source text: (http://bit.ly/2n39rAZ) https://sg.news.yahoo.com/brief-kpj-healthcare-says-kl-100521336.html