Hong Kong-listed infertility specialist Jinxin Fertility Group Limited (JXR) will acquire a significant stake in its Southeast Asian peer PT Morula Indonesia, a subsidiary of Northstar-backed PT Bundamedik Tbk, according to a statement on Thursday.
Bundamedik is a popular women- and children-focused healthcare group, which listed on the Indonesia Stock Exchange (IDX) in 2021.
Following the share subscription and purchase agreement with JXR, PT Bundamedik Tbk’s stake in Morula Indonesia will reduce from 63% to 47.3%, while JXR will own a 30% stake in the company, according to an IDX disclosure.
The deal paves the way for the entry of JXR into the Southeast Asian market as it looks to diversify beyond China, which is witnessing a dramatic decline in birth rates as more couples opt not to have children.
Morula Indonesia, which focuses on IVF treatments, has been looking for an investor for months. JXR and Morula Indonesia aim to leverage their mutual expertise and strengths in Assisted Reproductive Services (ARS). Morula Indonesia has 10 ARS facilities across the country.
JXR, on the other hand, is the largest private ARS provider in China, with a presence in the US as well.
In June 2019, JXR was listed on the Hong Kong Stock Exchange as part of plans to grow its international presence. JXR currently has a strong global industry presence, through its ownership of six hospitals and co-management of five hospitals in mainland China; two fertility clinics in Hong Kong; 10 fertility clinics operating under the HRC Fertility brand in the US, and one fertility clinic in Laos.
Dr. Ivan Rizal Sini, the President Director of Morula, said: “We are excited about this partnership with JXR and the opportunities it represents. We believe that together, we can achieve more and make a significant contribution to the region’s economic growth.”
Indonesia’s healthcare is primed for active dealmaking as local and global private equity investors eye opportunities in the sector that has been resilient to global macroeconomic headwinds. Parallely, several healthcare players are looking to raise capital and scale up their operations to meet growing demand.
DealStreetAsia had reported recently that IDX-listed investment firm PT Saratoga Sedaya Investama Tbk (Saratoga) is looking to acquire a majority stake in Brawijaya Hospital & Clinic from private equity firm Falcon House Partners.
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