KUALA LUMPUR (Oct 17): Medical equipment and furniture manufacturer LKL International Bhd (KL:LKL) has announced a proposed joint venture (JV) with PT Fasilitas Teknologi Nusantara (Fastech) to expand into the Indonesian healthcare market.
In a Bursa Malaysia filing on Thursday, LKL said the JV will primarily engage in the business of manufacturing, selling, trading and distribution of medical equipment, medical devices and medical furniture in Indonesia.
Fastech is principally engaged in the business of providing workforce solutions in Indonesia that specialises in providing high quality labour resources, said LKL.
The JV will be incorporated under PT LKL Indonesia Makmur, with a total share issuance of 10,000 ordinary shares where LKL will hold 51% interest and Fastech will take up the remaining 49% equity stake.
The company will fund the investment in the JV through its internally generated funds.
LKL opines that by establishing a local manufacturing presence, the JV will help to reduce costs, enhance operational efficiency and meet the growing demand of quality healthcare solutions in Indonesia.
Signs MOU with Andorra for medical equipment leasing potential
Separately, LKL also announced on the exchange that its wholly owned subsidiary LKL Advance Metaltech Sdn Bhd (LKLAM) signed a memorandum of understanding (MOU) with Andorra Healthcare Bhd to explore potential medical equipment leasing for a new hospital in Johor Bahru.
Andorra through its subsidiary operates Andorra Women & Children Hospital in Selangor.
LKL said in the filing that both parties aim to investigate the feasibility of providing leasing solutions for medical equipment and potentially other related healthcare infrastructure requirements for this new hospital.
“The MOU offers the company a strategic opportunity to provide tailored leasing solutions for a new hospital in Johor Bahru. By offering access to advanced medical equipment without the financial burden of upfront costs, LKLAM supports the hospital in optimising its resources and focusing on high-quality patient care,” added LKL.
At the time of writing, shares of LKL remained unchanged at 11 sen from the close of the previous trading day, giving the company a market capitalisation of RM40 million.