According to the company, an independent valuer will be appointed to ascertain the finalised transaction value of the acquisition.
The company believes that this deal is an opportunity to venture into a new business area that has potential for growth.
"Accordingly, the proposed acquisition would allow the company to navigate its current financial difficulties and position itself for a robust recovery," reads Alpha DX's SGX announcement on March 18.
Shanghai Kedong Network Technology, the target entity, is described to be in the digital transformation in the health insurance sector in China.
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Relatively unusual for RTO deals, the acquirer, in this case, Alpha DX, will bear the professional fees and other costs related to the proposed transaction.
In case the deal wasn't given the necessary regulatory go-ahead, the vendors of Shanghai Kedong will pick up the tab.
Alpha DX says that the deal is conditional on Shanghai Kedong achieving certain financial targets, including net profit after tax of not less than RMB7.1 million for its FY2023, and not less than RMB14.2 million for 1HFY2024.
