Materia Medica Malaysiana

SJMC buys Megah Medical for RM10.7m

Sime Darby Bhd’s unit Subang Jaya Medical Centre Sdn Bhd (SJMC) has acquired Megah Medical Specialists Group Sdn Bhd (MMSG) in Petaling Jaya for RM10.70 million.
The acquisition of the MMSG would be financed by SJMC’s own funds under the latter’s expansion programme to upgrade its facilities.
SJMC director Datuk Syed Tamin Syed Mohamed said on April 28 that MMSG’s 17,500-sq ft facility in Taman Megah, together with the SJMC managed Klinik Rantau Petronas in Kerteh, would be the first of a chain of feeder hospitals for SJMC as well as day-care and outpatient treatment centres.
Speaking to the press after the signing ceremony in Subang Jaya on April 28, he estimated SJMC should be able to record RM15 million in profit on the back of RM175 million in revenue for the financial year ending June 30, 2005.
For FY04, he estimated profit of “about RM13 million” on the revenue of RM150 million.
On the acquisition of MMSG, Syed Tamin said it was part of the plan to make SJMC a “mothership” for a series of similar centres throughout the country.
“We’ve built SJMC to be best-in-class but our patients are all over the country. What we want is if a patient in Kedah has a problem, they don’t have to come here. If we had a centre in Alor Star, they can be examined by our doctors there,” he said.
Tamin said the MMSG acquisition would bring together SJMC’s expertise in in-patient treatment with MMSG’s expertise in out-patient treatment to create “the best overall healthcare” in the country.
The takeover is expected to lead to some “letting go” of MMSG staff and there will be a name change, he said.