Q&M to ramp up China acquisitions with $60m MTN: analyst

The MTN has 4.4% interest due Mar 2018.

Q&M is stepping up its game, with acquisitions expected to rise in the coming years.

The dental group issued a $60m MTN, and analysts from Maybank Kim-Eng thinks this is timely, as interest rates are rising. The group managed to secure an attractive rate due to overwhelming demand for its MTN.

Q&M has net cash of SGD3.5m. Including proceeds of SGD14.1m from its property sale in Jurong and netting off SGD10.0m for its remaining payment for Aoxin and Qinghuangdao, its net cash should increase to SGD7.6m.

Based on the amount raised, Maybank Kim-Eng analysts think there could be more major acquisitions, especially in China.

At the moment, Q&M has only one proposed acquisition worth SGD6m, with a first-year profit guarantee of SGD0.6m.