KUALA LUMPUR: Government investment arm, Khazanah Nasional Bhd, plans to relist Integrated Healthcare Holdings Sdn Bhd (IHH) in one to three years subject to market conditions.
“We look forward to relist this company either in Malaysia or Singapore. As this is a regional franchise business, I do not discount the possibiltiy of dual listings as well.
“With strong underlying operating and earnings before interest, taxation, depreciation and amortisation (EBITDA) close to 20% per annum currently, we are confident that this asset, with a strong partner in Mitsui & Co, is well on its way to being an even stronger regional champion,” managing director Tan Sri Azman Mokhtar said in a press conference at Invest Malaysia 2011 yesterday.
Khanzanah has announced that Japanese trading house Mitsui & Co will acquire 30% stake in IHH from Khazanah for RM3.3bil. IHH wholly-owns Parkway Holdings Ltd, Pantai Holdings Bhd, IMU Health and 8.8% of Apollo Hospitals Enterprise Ltd.
Khazanah's initial investment in IHH was in 2005 with the acquisition 13.2% equity in India healthcare firm Apollo for RM165mil. Following that, it acquired 100% stake in IMU Health and Pantai Holdings in 2007 and Parkway in 2008.
Before being taken private, Pantai Holdings and Parkway were listed in Malaysia and Singapore respectively.
“The Mitsui transaction gives us the confidence and has strengthened IHH's position. It has effectively placed an equity value on IHH of RM11bil and enterprise value of RM14.6bil,” he said.
Meanwhile, on the divestment of its 32.21% stake in Pos Malaysia Bhd, Azman said they already had a winner in mind but could not reveal the identity just yet before presenting to the board for approval later this month.
“What is more important is the process where we ended up with about 50 bidders before shorlisting them to a few companies.
“It is clear that we want the new major shareholder of Pos Malaysia to be financially sound as well as having the strategy to unlock value in Pos Malaysia.
“Also, we have to consider the aspect of the Government's golden share' and the Federal land that some of the post offices are located on.
“The winner must also be mindful and aware that Pos Malaysia has universal service obligations,” he said.
Azman said the bidders were also made aware of the new Postal Bill, expected to be tabled in parliament soon.
“The bill is in the final stages of drafting where industry players have all been consulted. So, I think what will be in the bill will not be entirely a surprise.
“Basically, it has been factored in the bids and evaluations,” he said.
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