18th Nov 2008 07:30
Tuesday 18 November 2008
MediLink-Global UK Limited
("Medilink", "the Group" or "the Company")
Admission to Trading on AIM
Placing to raise £2.1m before expenses
MediLink-Global UK Limited (AIM: MEDI), the electronic healthcard network service provider, announces the successful admission to trading on AIM today. The Company raised £2.1 million before expenses at a Placing Price of 18 pence per share and at admission the company is valued at £18.6 million. The net placing proceeds will be used to provide working capital to fund the expansion of the healthcare network, initially across China but also into other new territories.
The Group has appointed Dowgate Capital Advisers Limited as its Nominated Adviser (NOMAD) and SVS Securities plc as its Financial Adviser and Broker.
Key Information about Medilink:
The Medilink System was created in late 2002 in Kuala Lumpur. It provides electronic healthcard network services to insurance and other companies and third party administrators to facilitate the administration of medical claims and healthcare data management.
The Medilink System provides members with an electronic swipe card which, on presentation, allows the Healthcare Service Providers to electronically assess whether the member is eligible for insurance cover relevant to their condition.
The Medilink System is now well established in the Malaysian healthcare industry. The Group has successfully secured two major accounts with its principal clients. The Company has now installed the Medilink System through a network of over 100 hospitals and 2,000 clinics. To date the Company has issued over 1.8 million cards to Malaysian members.
The Directors believe that the Company is the only operator in Malaysia to provide a real-time electronic insurance verification system. As such, it facilitates easier medical claims for members and can be used as a selling point for insurance companies to recruit corporate clients.
Following an agreement with ING, in 2006 an initial 1,800 EDC terminals were deployed throughout Malaysia. In 2007 the Group signed its first software license with Great Eastern Life Assurance (Malaysia) Berhad.
In 2006 the Group secured its first contract in China with Generali China Life Insurance Co. Ltd. To date, MidLink has established a network of approximately 100 Healthcare Providers across ten key Chinese cities and over 33,000 cards have been issued to Chinese members. The Directors believe that there is a considerable opportunity in China and an implied market potential of some RMB 489 billion.
Placing Statistics
|
Placing Price |
18 pence |
|
Number of Ordinary Shares in issue prior to the Placing and Admission |
90,002,000 |
|
Number of Placing Shares |
11,666,666 |
|
Number of shares to be issued in connection with services provided pursuant to the Placing and Admission |
1,661,964 |
|
Number of Ordinary Shares in issue following the Placing |
103,330,630 |
|
Percentage of the Enlarged Share Capital subject to the Placing |
11.29% |
|
Gross proceeds receivable by the Company pursuant to the Placing |
£2.1 million |
|
Market Capitalisation at the Placing Price on Admission |
£18.6 million |
Enquiries:
|
MediLink-Global UK Limited |
Tel: +603 22 963 028 |
|
Shia Kok Fat, Chief Executive Officer |
http://www.medilink-global.com |
|
Dowgate Capital Advisers Limited (Nominated Adviser) |
Tel: 020 7492 4777 |
|
Liam Murray |
|
|
SVS Securities Plc (Financial Adviser and Broker) |
Tel: 020 7638 5600 |
|
Ian Callaway |
|
|
Parkgreen Communications Limited |
Tel: 020 7933 8787 |
|
Mob: 07980 541 893 |
|
|
paul.mcmanus@parkgreen |
Further information on the Company, the Placing and Admission can be found below. This information should be read in conjunction with the full Admission Document.
Current Trading and Prospects
The Board considers that the prospects for the Group are promising. Although competition in the sector is expected to intensify, the Directors believe that the Group has a competitive advantage through the development of the Medilink System and they remain committed to devoting significant resources to ensure the Group's success in the market.
Current trading is proceeding satisfactorily. Group revenues for the period ended 30 June 2008 reflect an increase of approximately 33 per cent. over the same period last year, although the Directors anticipate that the greater part of the Group's revenues will arise in the second half of the year.
During the first six months of 2008 the Group has signed a number of new contracts including:
Via its strategic alliance agreement with MidLink, an agreement to facilitate third party administrator services for Ping An Retirement Insurance Co. Ltd.
A memorandum of understanding with Sunshine Insurance Group Corporation Limited for the provision of the Medilink System's electronic healthcard network system in China. A contract with CIMB-Aviva Takaful Berhad to support the air travel insurance policies of Firefly, a subsidiary of Malaysia Airlines.The Company is in negotiations with a number of other potential clients and anticipates it will sign further contracts during the second half of the current financial year. A number of these prospects come from existing relationships in Malaysia that are being extended to new regions.
Board of Directors
Norman Lott, Non-Executive Chairman (UK)
Mr Lott is an associate member of the Institute of Chartered Accountants in England and Wales and is the part-time finance director of ReGen Therapeutics Plc and various other public and private companies. Prior to taking up his present positions Mr Lott was the finance director and deputy managing director of Tiger Books International Plc, financial controller of Mary Glasgow Publications and Parks Bookshops Ltd (each part of Wolters Kluwer (UK) Plc), UK finance director of FTC Holdings Plc, finance director of Flowsave International and Graham & Trotman Ltd, financial controller of Stromberg (UK) Ltd and an assistant manager with Peat Marwick (Hong Kong).
Shia Kok Fat, Chief Executive Officer
An accountant by training, Mr Shia, a Malaysian, served as an internal audit manager in a publicly listed telecommunications company, Telekom Malaysia Berhad, for eight years during which he was involved in formulating financial policies and procedures, reviewing operational and financial systems and transactions as well as streamlining business processes. Subsequently he spent four years in a software development and systems consulting environment where he worked on many computerisation projects for medical clinics and hospitals. Prior to founding the Group he spent three years in healthcare management and consulting for a managed care organization with 135,000 members. A founder-member and substantial shareholder of the Group, Mr Shia is principally responsible for the Group's strategy and direction.
Yap Tai Tee, Executive Director
Mr Yap, a Malaysian, is a promoter, substantial shareholder and the group managing director/chief executive officer of Asdion, a company listed on the MESDAQ Market of Malaysia. He was appointed to the board of directors of Asdion on 30 September 2004. In 1987 he obtained a diploma in electrical engineering from the Singapore Polytechnic, Singapore. In 1989, he graduated from Lancaster University, United Kingdom, with a BSc (Hons) in information engineering with first class honours. He is also currently the general manager of Techtron Integrated System (S) Pte Ltd ("TIS"), a position he has held since 1995. In this position he is responsible, inter alia, for overseeing and managing the entire operations of TIS. Prior to joining TIS in 1993 as the marketing manager he was a research associate with Koeneman Capital Management Pte Ltd.
Chen Shien Yee, Finance Director
Mr Chen, a Malaysian, is a Fellow of the Association of Chartered Certified Accountants and an Associate Member of the Malaysian Institution of Accountants. He has over 12 years experience in auditing, tax consultancy and secretarial and financial accounting advisory services. Prior to joining the Group in July 2008 he held positions as an equity partner in FKL & Associates (Chartered Accountants), chief financial officer of Rhythm Consolidated Bhd (a company engaged in publishing, printing, franchising and information communication technology), general manager of finance and accounts of Dataprep Holdings Bhd (an information technology company), head of finance and accounts of L&M Corporation Group of Companies, (a company engaged in construction and investment holding) and group accountant of Taman Industri Selangor Sdn Bhd (a property manager and developer).
Ng Lai Siang, Non-Executive Director
Ms Ng, a Malaysian, currently holds an audit and tax license issued by the Ministry of Finance in Malaysia. She held the position of audit/tax manager & company secretary for seven years in Hun & Co prior to her tenure in 2001 and 2002 as a senior audit manager in SY Kwong, Foong & Co., where she was involved in strategic planning and in-house training. In 2002 she founded LS Ng & Associates and MLTT Management Services, which provides a variety of business services. She joined the Board on 25 July 2008.
Related Shares:
MEDI.L