IHH gets license to set up Shanghai joint venture

PETALING JAYA: IHH Healthcare Bhd's indirect wholly-owned subsidiary M&P Investments Pte Ltd has received a business licence from Shanghai Administration for Industry and Commerce, for the establishment of a 70%-owned sino-foreign equity company named Parkway Health Shanghai International Hospital Company Limited (PHSIH) for 20 years.
The validity period of the licence is from June 29 to June 28, 2035.
This follows the equity joint venture contract dated April 6 and amendment to equity joint venture agreement dated May 8, entered into between M&P and Shanghai Hongxin Medical Investment Holding Co Ltd.
The remaining 30% equity stake in PHSIH is owned by Shanghai Hongxin.
PHSIH was established on June 29 in China as a sino-foreign equity company. The registered capital of PHSIH is RMB455 million (RM274.37 million), of which M&P contributed a cash subscription of RMB318.5 million and Shanghai Hongxin contributed RMB136.5 million.
The principal activity of PHSIH is the provision of medical and health related facilities and services, including multi-specialty hospital's outpatient, inpatients, operating theatres, radiology departments, laboratory, diagnosis room, pharmacies, food and beverage facilities, conference or function areas, business centers, retail establishments, automobile parking facilities and all other hospital facilities that are operated in connection.
The principal activity of Shanghai Hongxin is healthcare infrastructure investment and development, asset management, consultancy services and real-estate management.
"The establishment will not have any effect on IHH's issued and paid-up share capital and substantial shareholders' shareholdings. There shall be no material effect on the earnings, net assets or gearing of IHH for the financial year ending Dec 31, 2015," IHH said in a filing with the stock exchange.