CHA Medical Group (CMG) has become the first South Korean medical center entering the Australian market by acquiring a stake in CFC Global, the country's fourth-largest in-vitro fertilisation (IVF) specialist.
The group announced on Jan. 31 that CHA Healthcare Co., a subsidiary of CHA Biotech Co. listed on the KOSDAQ, has signed an agreement to acquire a 65 percent stake in CFC Global, which runs seven fertility clinics in Australia, through CHA SMG Australia, a joint venture between CMG and Singapore Medical Group (SMG).
Since CHA Healthcare holds 80 percent of joint venture’s total shares, its investments reach 22.1 million Australian dollars (US$17.8 million or 19.04 billion won), a 52 percent stake in total shares. The company will complete the acquisition on Feb. 28.
Under the agreement, the medical group will directly manage and operate seven fertility centers in major Australian cities such as Sydney, Brisbane and Melbourne, and will acquire a variety of business rights such as CFC’s social biobank, a frozen egg storage bank, and genetic testing.
CMG set up CHA-Columbia Fertility Center at Columbia University in New York City in 1999 and took over CHA Hollywood Presbyterian Medical Center with 434 licensed beds in L.A. in 2004. Based on these, the medical group saw its cumulative surplus reach US$200 million (213.88 billion won) as of the end of last year. Last year, CMG bought an 8.8 percent stake in SMG, which has 29 medical clinics in Singapore, for 15 million Singapore dollars (US$11.44 million or 12.21 billion won) in order to break into the Southeast Asian market that has a great growth potential. The medical aims to become the world's largest In Vitro Fertilization (IVF) group that performs over 50,000 cycles annually by 2022 by expanding its fertility clinics in Spain and the United States and its fertility networks throughout the world.