Quality Healthcare buys AMPG

Quality Healthcare Asia is forming the largest private medical-clinic company in Hong Kong by taking over competitor AMPG Group.

The company will offer public access to more than 200 medical centres and nearly 300 general practitioners if the takeover plan is approved by shareholders.

Quality said it would pay $176.21 million for AMPG, owner of Allied Medical Practices Guild and 14 related medical centres.

Of an initial payment of $90.68 million, $47.92 million will be paid in 35.39 million Quality shares at $1.35 each, a 7.53 per cent discount to Wednesday's close of $1.46. The remainder of that portion will be paid in cash.

After issuance of Quality shares to AMPG, the latter will hold a 4.9 per cent stake in Quality.

The balance payment of $85.53 million will be paid by the issuance of three tranches of redeemable preference shares convertible at $1.62 next year, $1.74 in 2001 and $1.89 in 2002.

The vendors of the AMPG group will guarantee that annual after-tax profits will not be less than $28.51 million for both this year and next.