Khazanah sells Prince Court to IHH

17 Sep 2019 / 20:12 H.

KUALA LUMPUR: Khazanah Nasional Bhd is divesting its entire stake in Prince Court Medical Centre Sdn Bhd (PCMC) to IHH Healthcare Bhd for RM1.02 billion cash.

Khazanah’s wholly owned indirect subsidiary Pulau Memutik Ventures Sdn Bhd has signed a share purchase agreement with Pantai Holdings Sdn Bhd, a wholly owned indirect subsidiary of IHH for the deal.

PCMC was acquired by Khazanah in 2018 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 PCMC to IHH, Khazanah’s healthcare platform.

The proposed divestment will enable PCMC to fully benefit from being integrated into IHH’s Malaysian operations and its broader global network. It would also strengthen IHH’s overall position in the domestic healthcare services market, with Khazanah’s continued contributions through its involvement in IHH.

Khazanah managing director Datuk Shahril Ridza Ridzuan said this transaction is in line with its refreshed mandate and provides Khazanah with the liquidity for its future investment capital requirements.

“In addition, Khazanah is confident that PCMC will further benefit from IHH’s wealth of experience in providing premium healthcare, whilst solidifying IHH’s position as a leading Malaysian healthcare operator, where we remain as a substantial shareholder with a 26.04% stake,” he said in a statement.

PCMC owns and operates a 277-licensed bed private healthcare facility offering a wide range of medical, surgical and hospital services including, among others, burns management, cancer, gastrointestinal diseases, interventional cardiology, in vitro fertilisation, nephrology, occupational health, orthopaedic and rehabilitation medicine.

This proposed acquisition will allow IHH to strengthen its position in the Malaysian private healthcare segment and broaden its service offerings. Further, it adds to the group’s clinical talent pool and will allow IHH to gain a larger share of the growing medical tourism market in the Klang Valley.

IHH expects the strong performance of PCMC to contribute positively to the future earnings and cash flows of the enlarged group following the completion of the proposed acquisition.

The transaction is expected to be completed in the first quarter of 2020.

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