OSK Research says the entry of Singapore billionaire Peter Lim Eng Hock as TMC Life Sciences Bhd's new second largest shareholder is unlikely to bring about any major improvement in the fertility firm's business for the next two years.
"We had earlier speculated that the new shareholder could be a reputable industry player which could turn around the medical centre faster.
"However, we are uncertain of the expertise of Mr Lim in the medical industry," it said in a research note today.
According to filings with Bursa Malaysia, Lim has emerged with a 29.6 per cent stake in TMC.
It had been reported that TMC was his second investment in the healthcare industry after he emerged as a substantial shareholder in Healthway Medical with a six per cent stake in June, the research house said.
It also noted newspaper reports saying that Lim was previously from the stockbroking industry, has investments in various fields and is ranked one of the richest men in Singapore.
"Dr Colin Lee Soon Soo, the founder and managing director of TMC, has sold all his 120.4 million shares in TMC to Mr Lim.
"While no formal announcement was made on the sale of another block of 29.2 million shares, these shares could have been owned by Dr Colin's brother, Mr Lee Soon Swee, and could have been sold to Mr Lim," OSK said.
It said Lim could have collectively bought about a 25 per cent from the Lee brothers at 52 sen per share but it was uncertain where the remaining 4.6 per cent came from.
Meanwhile, it said, it was too early to tell if Lim would appoint someone to the TMC board or whether there would be a drastic change in the management team.
"From our understanding, Dr Colin Lee is likely to remain on the board and continue to oversee the medical centre," OSK said.
It said judging from the 52 sen price tag, Lim was probably looking beyond financial year 2012 for his investment in TMC.
"We believe Tropicana Medical Centre, which is strategically located in Tropicana and which is equipped with the latest medical equipment and offers other healthcare services besides its traditional fertility services, will eventually make profit," it said.
It said TMC was likely to record losses this year and minor earnings next year.
Judging from the slow progress in Tropicana Medical Centre, its gestation period might even stretch into the first half of 2012 or after, it added. -- Bernama
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