Under the agreement, Q&M Dental Group (Malaysia) will acquire 70% of Lee’s shares in D&D Dental for a cash consideration of RM840,000 ($336,000 at the time).
Following the acquisition, Q&M Malaysia will hold a 70% equity stake in D&D Dental, while Lee will hold the remaining 30%. D&D Dental will, accordingly, become a subsidiary of the company.
Q&M says it has served a copy of the notice to Lee.
In the arbitration proceedings, Q&M seeks payment from Lee of RM840,000 ($274,446) plus 10% interest down to the date of payment with respect to Q&M’s right to have Lee repurchase its 70% shares of D&D, according to the terms of the supplementary agreement made on Nov 6, 2015.
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Lee is also required to return other payments relating to annual guaranteed profit targets of RM77,000 each from FY2016 to 2019.
The arbitration is not expected to have a material adverse effect on Q&M’s operations and the financial performance of the group.
Shares in Q&M closed 1.5 cents higher or 3.2% up, at 48.5 cents on Oct 22.
