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Singapore Medical Group takes stake in Australian IVF specialist
CATALIST-LISTED Singapore Medical Group (SMG) has marked its foray into the Australian market with a stake in CFC Global, the country's fourth-largest in-vitro fertilisation (IVF) specialist.
The deal was made through a joint venture company, in concert with CHA Healthcare Co, a unit of Korean healthcare provider CHA Medical Group.
The joint venture company - CHA SMG (Australia) - will acquire a 65 per cent stake in CFC Global.
SMG has a 20 per cent equity interest in the joint venture company, which was created to explore and invest in Australia-based acquisition targets.
Upon completion of the deal, SMG will have an effective interest of 13 per cent stake in CFC - also known as City Fertility Centre - through this arrangement.
The deal's value was not disclosed in the press statement put out by SMG.
Executive director and chief executive of SMG Beng Teck Liang said the deal was made against the backdrop of rising growth in the global IVF market due to "delayed pregnancies among women, rising awareness pertaining to infertility, and the availability of favourable reimbursement systems".
"Looking ahead, we expect this strategic partnership to reap cross border synergies through technological knowledge share of best practices and an enlarged patient pool to drive referrals in countries such as Vietnam, where we continue to gain traction amid the rising demand for women's health," Dr Beng added.
Established in 2003, CFC owns and operates City Fertility Centre with seven clinics located in Brisbane, Melbourne, Adelaide, Sydney and the Gold Coast.
CFC's centres offer services like pre-IVF solutions such as intra-uterine insemination and ovulation induction, IVF, fertility preservation, family banking and genetic screening, among others.
According to SMG, CFC holds more than 10 per cent market share in Queensland, Victoria and South Australia, considered to be its key markets.