MEDI.L Regulatory News (MEDI)

28 Apr 2009 07:00



MEDILINK-GLOBAL UK LIMITED 

Acquisition and contract wins

MediLink-Global UK Limited ("MediLink"), the electronic health card network service provider, announces the acquisition of Lifeinc Holdings Pte Ltd ("Lifeinc Holdings"), a provider of third party administrator ("TPA") services to clinics in Singapore, for a total consideration of SGD500,000 (circa £230,000). MediLink also announces it has entered into a contract with AXA-Winterthur in China and that it has won its first ever contract in Thailand.

Acquisition

Lifeinc Holdings was incorporated on 30 January 2009 for the purpose of taking on the TPA business of Lifeinc Group Ltd and Lifeinc Healthcare Services Pte Ltd. These businesses came with a healthcare provider network and a client list of over 160 clinics and hospitals.

The consideration under the acquisition is SGD500,000 (circa £230,00), of which SGD300,000 (circa £138,000) is payable in cash and SGD200,000 (circa £92,000) is to be satisfied by the issue of 535,217 new ordinary shares at a price of 18 pence per share. The new ordinary shares are expected to be issued on or around 30 June 2009 and admitted to trading shortly following this date.

The acquisition will be immediately earnings enhancing.

AXA-Winterthur contract win

MediLink-Global UK Limited also announces that MediLink (Beijing) TPA Services Co Ltd, a subsidiary of the Company, has entered into a contract to provide Third Party Administrator ("TPA") services to AXA-Winterthur Insurance (Asia) Ltd. Shanghai Branch ("AXA-Winterthur"). The contract will run for one year and is subject to annual automatic renewal. 

Under the contract MediLink will provide a comprehensive package of TPA services using MediLink's bespoke Medical Claim IT System called ECCS (Electronic Claims Clearance System) and MediLink's exclusive EDC (Electronic Data Capture) healthcare provider network, with services that include cashless hospitalisation, direct-billing medical claim processing, claim review, claim analysis and management reporting, cost containment services, 24/7 call center helpline service, online member portal, and special arrangement for Medical Second Opinion.

First contract win in Thailand

MedilLink also announces that MediLink (Thailand) Co Ltd, a subsidiary of the Company, has won its first ever contract in Thailand. The contract is to provide TPA services for the Thai Insurance Public Company Limited. The initial term of the contract is for two years and thereafter is subject to annual automatic renewal. Medilink (Thailand) has already started deploying 200 units of its EDC (Electronic Data Capture) terminals to clinics and hospitals across Thailand. 

Shia Kok Fat, Medilink CEO, commented "Achieving a pan-Asian presence with a particular emphasis on China remains an integral part of our strategy and I am delighted to report on further progress in both areas. The acquisition of Lifeinc Holdings will make a positive contribution to our profits and increases our profile in Singapore which is essential as it is where many of the pan-Asian insurance companies have their headquarters. We are extremely pleased with the AXA contract gain as this shows we are progressing with our core strategy of growing our presence in China. The contract gain in Thailand is an important breakthrough into a market where we feel there is good potential for further growth. I look forward to reporting on further progress as we continue to establish a stronger foothold in existing markets as well as break into new areas both organically and through acquisition."

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