Dr Lee and his brother sold their entire stakes, or a quarter of TMC, to Singapore billionaire Peter Lim Eng Hock this week.
Lim also bought another 4.6 per cent stake, bringing his tally to 29.6 per cent. This makes him the second largest shareholder, after Tan Sri Vincent Tan Chee Yioun, who owns about 31 per cent of the company.
"First of all, I disposed of my stake to an investor who sees the intrinsic value and potential of TMC. I have built the company from a fertility centre to an established healthcare centre offering various services.
"The company is now established and on the next stage of growth. And I trust the new party will be able to do just that - help in bringing TMC to the next level.
"At the same time, I can continue to put in my best efforts to grow the company, especially in the fertility centre, a niche segment that has been our strength all along and offers the highest margin," Dr Lee told Business Times.
There were concerns of how the sale would affect the group's operations. TMC has not made money for six straight quarters.
But Dr Colin Lee is very optimistic that things will get better soon.
"The losses came in only when we established the new hospital, which was within our expectation. Last quarter, we made our sixth consecutive losses, but I believe that it was the lowest point and the worst is over. We expect things to turn around soon.
"Our turnaround plan will be driven by few factors. First is our continuous effort to reduce operating costs, which is going on well. Next is our marketing efforts, which we have invested a lot in and started to see the fruit. For example, we are seeing an increase in corporate clients as well as being on the panel of more insurance companies.
"I am very confident of a turnaround in the very near future. I am not implying that it will be in the next one or two quarters, but all I can say is the company's future is very promising and I expect 2011 to be a very bright year for the company," he said.
TMC shares fell 5.5 per cent, or 3 sen, to close at 52 sen yesterday as investors were uncertain of Lim's ability in the healthcare industry.
OSK Research, in a report, maintained its "sell" call and advised investors to seek alternative investments while waiting for TMC to turn around. But it raised its target price to 30 sen from 21 sen previously.
"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 Lim in the medical industry. Speculation on TMC has caused its share price to appreciate ... but we believe (Lim) is unlikely to bring about any major improvement in TMC's business for the next two years," said OSK Research.
By Goh Thean Eu
btimes.com.my
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