The Board of Directors of Tambun Indah wishes to announce that the Company had on 28 January 2020 entered into a Memorandum of Understanding (“MOU”) with Show Chwan Medical Care Corporation (“Show Chwan”) to collaborate efforts for the proposed establishment of a private specialist hospital which shall be known as “Penang Show Chwan Hospital” (“the Project”) at Pearl City (Bandar Tasek Mutiara), Simpang Ampat, Seberang Perai Selatan, Penang, a township under the development of Tambun Indah.
Show Chwan manages a healthcare system in Taiwan, and has its corporate office in Changhua City, Changhua County 500, Taiwan, Republic of China. Show Chwan owns and operates 8 hospitals that provide a full range of medical specialties through various facilities. Currently, the hospitals have approximately 3,600 beds and more than 5,000 employees in its operations.
Tambun Indah and Show Chwan are hereinafter collectively referred to as “the Parties”.
The purposes of the MOU are for both Parties to commit their intention and to strengthen their mutual understanding to set up a collaboration for the purpose of materializing the Project and to carry out a feasibility study for the Project. The salient terms of the MOU are as follows:-
- The Parties shall jointly contribute their own expertise and specialty to achieve the purposes of the MOU, including but not limited to the following items:
- hospital master planning and development;
- project management and construction;
- hospital operations, management and infrastructure.
- Except for non-disclosure of confidential information by the Parties, the MOU has no legal binding force and effect, and neither Party shall have any claim whatsoever against the other on any matter arising out of the MOU or any matter incidental thereto until the execution of the formal agreement.
- Both Parties agree to bear all costs incurred for the purposes of the MOU in equal share until the termination of the MOU or signing of a formal agreement.
- The MOU shall subsist for a period of six (6) months from the date of signing unless otherwise extended by both Parties in writing.
The Project is envisaged to be a multi-disciplinary medical centre with approximately 250 beds situated on a 4-acre land at Pearl City Business Park. The Project, if established, shall cater to the population in Seberang Perai Selatan and Seberang Perai Tengah, Penang which includes various towns such as Simpang Ampat, Valdor, Jawi, Bukit Mertajam, Bukit Minyak and Juru and also several well established and large scale industrial parks such as the Prai Industrial Park, Penang Science Park and Bukit Minyak Industrial Park. The Project, if established, shall also contribute to promoting Penang as a major medical tourism destination or hub in the region.
The MOU does not have any effect on the issued and paid-up share capital, net assets and earnings of the Company for the financial year ending 31 December 2020.
The MOU is not subject to the approval of shareholders of Tambun Indah and/or any government authorities.
None of the directors and/or major shareholders of Tambun Indah and/or persons connected with them have any interest, either direct or indirect in the MOU.
The Board of Directors of Tambun Indah is of the opinion that MOU is in the best interest of the Group as it provides the opportunity for the Company to enhance its potential earnings and to improve its long-term growth prospects.
The MOU is available for inspection by shareholders of Tambun Indah at the registered office situated at 51-21-A, Menara BHL Bank, Jalan Sultan Ahmad Shah, 10050 Penang during office hours from Mondays to Fridays (except public holidays) for a period of 3 months from the date of this announcement.
This announcement is dated 28 January 2020.