KUALA LUMPUR (April 17): Property developer Menang Corp (M) Bhd said on Wednesday it had signed an agreement to acquire 20% of an Indonesian healthcare joint venture (JV) for RM4 million.

The company also agreed to subscribe up to 30 million preference shares for RM30 million in the JV, Alpro Menang Ventures Sdn Bhd, Menang said in an exchange filing. The remaining 80% of the JV will be held by Alpro Alliance Sdn Bhd (ALA), which retails pharmaceutical products.

“The investment presents an opportunity for the company and its subsidiaries to form a strategic partnership with ALA in venturing into the healthcare and wellness business in the thriving Indonesian market,” Menang said.

Menang mainly develops properties in Seremban, Negeri Sembilan. The company is developing the remaining 460 acres of mixed development land in Seremban 3, according to its website. The company also has three concession projects to develop Universiti Teknologi Mara campuses.

Under the shareholders’ agreement signed, Menang will subscribe to 20 million preference shares in the JV. It also undertakes to provide additional funds of up to RM10 million to the JV for the purpose of potential acquisitions.

The board of the JV will comprise eight directors nominated by ALA, while Menang is entitled to nominate two members to the board.

The investment will be fully funded by internally generated funds, Menang noted. “This venture enables the group to pursue a possible path of transformation to widen its source of business, with a view for further value creation for its stakeholders,” the company said.

Net profit for the second quarter ended Dec 31, 2023 (2QFY2024) grew 22.86% from a year earlier to RM4.41 million, on the back of a reduction in finance costs incurred after making scheduled loan repayment for the group’s existing loans. Quarterly revenue jumped 45.75% year-on-year to RM32.32 million.

At the close on Wednesday, shares in Menang were 2.44% or 1.5 sen higher at 63 sen, giving it a market capitalisation of RM326.61 million.