Stem cell banking services company Cordlife said on Wednesday it will buy a 19.92 per cent interest in StemLife Berhad for 29.58 million ringgit (S$11.5 million).

The Singapore-listed company has entered into a conditional sale and purchase agreement to acquire the stake in StemLife, which is listed on Bursa Malaysia.

Cordlife will finance the purchase through a cash payment of 2.85 million ringgit and the issue of 8 million new ordinary shares at $1.30 each.

"We believe that the proposed transaction presents Cordlife with the opportunity to further cement its leading position in Asia, and particularly the Asean region," said Mr Jeremy Yee, executive director and chief executive officer of Cordlife.

"Through the stake in StemLife, Cordlife is now well-positioned to capitalise on the tremendous growth opportunities in Malaysia driven by rising affluence and greater health awareness."

He added that the acquisition would allow the group to "capitalise on economies of scale and scope in all its service and product offerings in Malaysia and potentially work with StemLife to offer its services and products to Cordlife's existing markets".

In addition, the group will be able to benefit from revenue and cost synergies, Mr Yee said.