KUALA LUMPUR: Khazanah Nasional Bhd (Khazanah) is selling 1.4 billion shares or a 16 per cent stake in IHH Healthcare Bhd (IHH) to Mitsui & Co Ltd of Japan for RM8.42 billion.
In a statement today, the sovereign wealth fund said the disposal at RM6 per share would reduce its stake in IHH to 26.05 per cent.
“This is based on the enlarged share capital of IHH after the completion of the acquisition of 30 per cent additional equity interest in Acibadem Saglik Yatirimlari Holding A.S by IHH,” Khazanah said.
IHH announced the Acibadem acquisition on October 8 this year.
Khazanah expects the disposal to be completed by the first-quarter of 2019.
It said the transaction was subject to relevant regulatory approvals and the completion of the Acibadem acquisition.
Khazanah said the transaction forms an important part of the restructuring of its portfolio.
The proceeds raised will be used for new investments and capital requirements, it added.
Khazanah said it would continue to be a significant shareholder with representation on the board of IHH, while providing stability to the shareholder base of IHH for the foreseeable future.
Khazanah managing director Datuk Shahril Ridza Ridzuan said the deal showed Mitsui’s confidence in IHH.
“Khazanah remains committed to supporting the group and looks forward to the future success of IHH. The divestment is part of Khazanah’s strategy to grow the businesses that we are invested in and to find the appropriate times and value to create liquidity for our future capital and investment needs,” he said.
Mitsui president and chief executive officer Tatsuo Yasunaga said the newly-acquired shares would increase its IHH stake to 32.9 per cent.
He said demand for medical care was rapidly increasing with economic growth and aging whereas Asia continued to face shortage of hospital beds and doctors.
Mitsui said it would build and expand its participation in Asia’s largest healthcare ecosystem with IHH at its core.
“We will further support IHH’s growth and also pursue opportunities that anticipates high growth such as ancillary services business and other new business in areas such as disease prevention and management, telemedicine, and personalised medicine, by effectively utilising digital transformation and innovative technology,” he said.
IHH is one of Asia’s largest private hospital groups, operating 50 hospitals with a total of over 12,000 beds in nine countries including Singapore, Malaysia, Turkey and India.