KUALA LUMPUR: Khazanah Nasional Bhd is selling its Prince Court Medical Centre to IHH Healthcare Bhd for RM1.02 billion.
IHH would fully pay for the entire 100 million ordinary shares and 35,176 redeemable preference shares in Prince Court in cash, Khazanah and IHH said in separate statements.
Khazanah said Prince Court was strategically acquired by it last year with the view of building up the healthcare services sector in Malaysia and to promote Kuala Lumpur as a destination of choice for quality healthcare in the region.
“Given the recent change in Khazanah’s refreshed mandate, the decision was made to sell Prince Court to IHH, Khazanah’s healthcare platform,” Khazanah managing director Datuk Shahril Ridza Ridzuan said in its statement today.
The proposed divestment would enable Prince Court to fully benefit from being integrated into IHH’s Malaysian operations and its broader global network.
“This transaction is in line with our refreshed mandate and provides Khazanah with the liquidity for our future investment capital requirements.
“In addition, Khazanah is confident that Prince Court will further benefit from IHH’s wealth of experience in providing premium healthcare, while solidifying IHH’s position as a leading Malaysian healthcare operator, where we remain as a substantial shareholder with a 26.04 per cent stake,” Shahril Ridza added.
Khazanah expects the deal to be completed in the first quarter of next year.
IHH chief executive officer-designate Dr Kelvin Loh said Prince Court would add to its existing network of 15 hospitals in 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,” Loh added.
Price Court is a 277-bed private healthcare facility offering a wide range of medical, surgical and hospital services such as burns management, cancer, gastrointestinal diseases, interventional cardiology, in vitro fertilisation, nephrology, occupational health, orthopaedic and rehabilitation medicine.
IHH Employs more than 55,000 people and operates over 15,000 beds across 80 hospitals in 10 countries including Singapore, Turkey, China, India and Sri Lanka.