CATALIST-LISTED specialist engineering services provider Acromec has entered into a joint venture (JV) with Tako Ventures to launch co-working laboratory spaces, the group said on Wednesday in a bourse filing.
The group said its wholly-owned subsidiary Acromec Engineers has entered into agreements with Tako Ventures to formalise a JV and implement it through a JV company called Life Science Incubator.
Tako Ventures is a Singapore-incorporated limited liability partnership focused on investing in scientific enterprises.
Acromec Engineers will acquire 15,000 ordinary shares representing a 30 per cent stake in Life Science Incubator for S$15,000, to formalise the JV. It will thereafter hold a 30 per cent stake in the company, while Tako Ventures will hold the remaining 70 per cent.
The group said the book value and net tangible assets (NTA) attributable to the acquisition shares amounted to S$16,227, while net profit attributable to the acquisition shares was S$1,227, as at June 30, 2021.
Acromec Engineers will also fund the initial phase works and its share of the 30 per cent shareholding in Life Science Incubator, estimated at around S$1.4 million.
Life Science Incubator, incorporated by Tako Ventures in October 2020, will build a facility that provides startups in the medical technology, biotechnology, and health technology sectors with access to flexible co-working laboratory spaces for research and development.
The JV company has secured suitable tenancy for its first co-working laboratory premises at the German Centre on 25 International Business Park Road, the group said.
Chief financial officer at Acromec Jerry Tan added that the space will be supported by the German Centre and the European community and its ecosystem, and it will offer the first mock operating theatre for rent outside of a hospital in Singapore.
Under the JV, Tako Ventures will provide the expertise, know-how, and processes required to operate and promote the joint venture, as well as obtain all the necessary licences and permits required to conduct the business, while Acromec Engineers will undertake the design, construction, and fitting-out works of the co-working laboratory facilities.
Executive chairman and managing director of Acromec Lim Say Chin said: "This represents another milestone for Acromec, strengthening our core engineering, procurement and construction business and enhancing our track record in serving the life science, biotech, healthcare, and research sector.
"Through this joint venture, we will also be able to explore new opportunities to further grow Acromec's business and continue to reinforce our position as an established and trusted provider of specialist engineering services for controlled environments."
In 2019, the first co-working laboratory space for biotechnology startups, NSG BioLabs, was set up by Engine Biosciences.
Shares of Acromec closed unchanged at S$0.10 on Wednesday.