KUALA LUMPUR (Sept 2): Property developer Paragon Globe Bhd is exploring a potential collaboration with Selangor government-owned Selgate Corporation Sdn Bhd to develop private specialist hospitals.

The group said it signed a memorandum of understanding (MoU) today with Selgate’s property arm, Selgate Properties Sdn Bhd.

The aim, it said in a bourse filing, is to develop several private specialist hospitals in the country and to make available healthcare services.

“The MoU allows Paragon Globe to build the capabilities in the healthcare and wellness industry by leveraging Selgate’s experience and technical expertise.

“The parties are desirous to explore potential business opportunities in the healthcare industry to enhance potential earnings as well as to sustain business growth in the long-term perspective,” Paragon Globe added.

The group said the MoU will not have any effect on its earnings, net assets, gearing, share capital and substantial shareholders’ shareholding for the current financial year ending March 31, 2022.

Paragon Globe’s share price closed five sen or 12.2% lower at 36 sen, valuing the group at RM268.78 million.