ID :
174113
Fri, 04/08/2011 - 13:18
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Shortlink :
https://oananews.org//node/174113
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KHAZANAH HAILS MITSUI'S INVESTMENT IN INTEGRATED HEALTHCARE
KUALA LUMPUR, April 8 (Bernama) -- Khazanah Nasional Bhd, which has invested RM7.112 billion in Integrated Healthcare Holdings Sdn Bhd (IHSB) since 2005, hails the entry of Mitsui & Co Ltd as a strategic partner. (US$1=RM3.03)
A Khazanah spokesman said Mitsui's investment would boost Khazanah's coffers and help reduce the net debt of the healthcare unit.
Under the deal, IHSB will get RM1.98 billion cash from Mitsui by issuing new shares, thus reducing its net debt to RM3.61 billion from RM5.59 billion.
Also, the medical support services and foreign worker medical screening concessions in Malaysia under Pantai Support Services Sdn Bhd, will be transferred out of the group to be held directly by Khazanah.
He said Khazanah was currently negotiating to dispose of the concession, estimated to be worth about RM150 million.
However, he said, the pricing issue has yet to be resolved.
"The deal is definitely a boost for Khazanah as it will get around RM1.32 billion through the sale of 661 million out of its 4.511 billion existing shares in IHSB to Mitsui," he said.
Khazanah achieved a gain of RM322 million from the deal and would definitely look for opportunities to expand its portfolio, worth about RM75 billion now, he said.
The spokesman said currently, IHSB's entities -- Parkway Holdings Ltd, Pantai Holdings Bhd, IMU Health Sdn Bhd and India-based Apollo Hospitals Enterprise Ltd -- were developing projects in several countries.
"IHSB is also set to increase its stake in Apollo Hospitals from 8.8 per cent currently, as Khazanah plans to sell its 3.3 per cent interest, valued at around RM136 million, to it," he said.
Last year, Khazanah invested RM4.084 billion in the healthcare sector, of which RM3.905 billion was in Parkway Holdings Bhd and RM179 million in IMU Health.
Khazanah managing director, Azman Mokhtar, on Thursday said the
government-linked company was open to any investment opportunities in the sector, which offered defensive and robust growth, and has been growing by double digits.
Meanwhile, OSK Research also welcomed the deal.
It estimated that Mitsui paid 40 per cent premium to the current regional average healthcare sector price earning ratio of about 20 times.
OSK said the deal was in line with its view that there was ample growth potential in the healthcare sector locally and regionally.
OSK said it expected a possible re-rating for KPJ Healthcare, the cheapest healthcare stock in the region.
"We do not rule out the possibility of a further upward re-rating on its valuation to bring it at least on par with its regional peers given that KPJ offers a comparable or better financial performance against its peers," it said.
A Khazanah spokesman said Mitsui's investment would boost Khazanah's coffers and help reduce the net debt of the healthcare unit.
Under the deal, IHSB will get RM1.98 billion cash from Mitsui by issuing new shares, thus reducing its net debt to RM3.61 billion from RM5.59 billion.
Also, the medical support services and foreign worker medical screening concessions in Malaysia under Pantai Support Services Sdn Bhd, will be transferred out of the group to be held directly by Khazanah.
He said Khazanah was currently negotiating to dispose of the concession, estimated to be worth about RM150 million.
However, he said, the pricing issue has yet to be resolved.
"The deal is definitely a boost for Khazanah as it will get around RM1.32 billion through the sale of 661 million out of its 4.511 billion existing shares in IHSB to Mitsui," he said.
Khazanah achieved a gain of RM322 million from the deal and would definitely look for opportunities to expand its portfolio, worth about RM75 billion now, he said.
The spokesman said currently, IHSB's entities -- Parkway Holdings Ltd, Pantai Holdings Bhd, IMU Health Sdn Bhd and India-based Apollo Hospitals Enterprise Ltd -- were developing projects in several countries.
"IHSB is also set to increase its stake in Apollo Hospitals from 8.8 per cent currently, as Khazanah plans to sell its 3.3 per cent interest, valued at around RM136 million, to it," he said.
Last year, Khazanah invested RM4.084 billion in the healthcare sector, of which RM3.905 billion was in Parkway Holdings Bhd and RM179 million in IMU Health.
Khazanah managing director, Azman Mokhtar, on Thursday said the
government-linked company was open to any investment opportunities in the sector, which offered defensive and robust growth, and has been growing by double digits.
Meanwhile, OSK Research also welcomed the deal.
It estimated that Mitsui paid 40 per cent premium to the current regional average healthcare sector price earning ratio of about 20 times.
OSK said the deal was in line with its view that there was ample growth potential in the healthcare sector locally and regionally.
OSK said it expected a possible re-rating for KPJ Healthcare, the cheapest healthcare stock in the region.
"We do not rule out the possibility of a further upward re-rating on its valuation to bring it at least on par with its regional peers given that KPJ offers a comparable or better financial performance against its peers," it said.
