KUALA LUMPUR, Sept 17 – IHH Healthcare Bhd is planning to fully acquire Prince Court Medical Centre from Khazanah Nasional Berhad for RM1.02 billion in cash by March 2020.
IHH’s wholly-owned subsidiary, Pantai Holdings Sdn Bhd, inked a conditional share purchase agreement with Pulau Memutik Ventures Sdn Bhd, a wholly-owned subsidiary of Khazanah, for the acquisition of 100 million ordinary shares and 35,176 redeemable preference shares in the private hospital company, representing the entire issued share capital of Prince Court.
“We are pleased to be adding Prince Court Medical Centre to our existing network of 15 hospitals across Malaysia.
“This is a rare opportunity to acquire an attractive and accretive asset in Kuala Lumpur’s ‘Golden Triangle’ that will strengthen IHH’s position in Malaysia while allowing us to capture the growing medical tourism market,” IHH CEO-designate Dr Kelvin Loh said in a statement today.
Prince Court owns and operates a 277-bed private health care facility that provides a wide range of medical, surgical and hospital services in the heart of Kuala Lumpur, such as burns management, cancer, gastrointestinal diseases, interventional cardiology, in vitro fertilisation, nephrology, occupational health, orthopaedic and rehabilitation medicine.
IHH currently runs 14 Pantai and Gleneagles Hospitals in Malaysia. The government-linked corporation’s 2018 PATMI (profit after tax and minority interests) excluding exceptionals increased 73 per cent year-on-year to a record high of RM1.03 billion, and paid its outgoing CEO, Dr Tan See Leng, RM34 million last year.
“This transaction is in line with our refreshed mandate and provides Khazanah with the liquidity for our future investment capital requirements,” Khazanah managing director Shahril Ridza Ridzuan said in a separate statement.
“In addition, Khazanah is confident that Prince Court will further benefit from IHH’s wealth of experience in providing premium health care, whilst solidifying IHH’s position as leading Malaysian health care provider, where we remain a substantial shareholder with a 26.04 per cent stake.”