The joint-venture will be known as Alpha IVF (Manila) Incorporated.
PETALING JAYA: Alpha IVF Group Bhd is venturing into the Philippine medical business, focusing on obstetrics and gynaecology as well as fertility, as it formed a joint-venture with two doctors from that country.
A shareholders’ agreement was signed between its wholly-owned subsidiary, Alpha IVF Systems Sdn Bhd (AIS) with two of Alpha IVF executive directors Datuk Dr Lee Soon Soo and Dr Ng Peng Wah, along with Dr Romerico F. Torres and Dr Maria Victoria Tan from the Philippines.
The joint-venture will be known as Alpha IVF (Manila) Incorporated (AIMI).
Alpha IVF will be investing RM8.74mil into AIMI using its initial public offering (IPO) proceeds or internally-generated cash, making it the controlling shareholder with an initial stake of 90.98%.
Lee and Ng will each have an equity interest of 0.01% for the RM961 to be paid out of their own pockets.
Romerico and Maria, on the other hand, will be investing RM1.01mil and RM301,500, respectively.
Romerico will initially hold a stake of 6%, which will increase to 10% a year after the Philippine venture commences operations.
Maria will own a 3% stake.
The four parties namely Lee, Ng, Romerico and Maria will serve as the directors of AIMI, with AIS acting as the beneficial owner.
Lee and Ng are also holding the position of directors in AIS.
AIS is involved in the business of providing management services, technological support and centralised marketing services.
For the establishment of AIMI, AIS will be providing services to start operations, centralise marketing and business development services, rights of usage for Alpha IVFs systems and process, licence, trademark and copyrights.
Alpha IVF Group as the holding company of AIS will offer ongoing management services to AIMI, while Romerico and Maria will be handling operations on ground and provide advice to align with local laws and regulations in the Philippines.
AIMI’s principal business involved providing services in the obstetrics and gynaecology as well as in fertility, in which will be labelled under the trade name of Alpha IVF & Women’s Specialists (Manila).
Alpha IVF Group is bullish about the outlook and prospects of its new business in Manila.
In a filing with Bursa Malaysia yesterday, Alpha IVF Group stated that the agreement is not expected to have a significant impact on the group’s earnings per share, net asset value, or gearing for the financial year ending May 31, 2025.
