Mahkota Medical Centre in Malacca up for sale?

KUALA LUMPUR: Singapore-listed healthcare services provider Health Management International Ltd (HMI) plans to sell the Mahkota Medical Centre in Malacca for about US$250mil, Bloomberg reported Tuesday.

HMI owns 48.95% of the 288-bed tertiary hospital, which is expected to be sold for US$250mil, said Bloomberg quoting unnamed sources with knowledge of the matter.

Two people told Bloomberg that Mahkota’s other shareholders also sought to sell their stakes.

According to HMI’s 2014 annual report, although it only holds a 48.95% equity interest in Mahkota Medical Centre, pursuant to an agreement signed by the hospital’s shareholders in 2002 HMI exercises control over the board of directors, and accordingly considers Mahkota Medical Centre Sdn Bhd to be a subsidiary.

Mahkota Medical Centre began operations in 1994 under the Lion group, and five years later part-ownership and management rein went to HMI, which was listed on the Singapore Exchange the same year,

For the financial year ended June 30, 2014 (FY2014), Mahkota Medical Centre recorded an 11% growth in revenue to RM212mil with the number of patients rising 6% from the previous year to nearly 290,000. 

HMI's other Malaysian hospital is the 29%-owned Regency Specialist Hospital in Johor, which posted a 61% revenue growth to RM79mil in FY2014.

Hospital and other healthcare services in Malaysia contributed a pre-tax profit of RM53.1mil to HMI for the year. 

In its half-year financial report released in February, HMI noted that the healthcare landscape in Malaysia would remain competitive this year with new hospitals being developed, particularly in Malacca and Johor, which are the group’s main markets.

"The shortage of skilled healthcare manpower remains a challenge for all healthcare operators in Malaysia. In Malacca, the Oriental Melaka Straits Medical Centre has begun operations and two new hospitals which are in or around the vicinity of Malacca have been publicly announced to be developed.

"In Johor, three new hospitals have been publicly announced and are expected to be developed over the next few years," it said.