Khazanah sells 16% stake in IHH to Mitsui for RM8.42b

Raja Shahreen Raja Othman, who is currently the CEO of Selangor

KUALA LUMPUR: Khazanah Nasional Bhd has confirmed StarBiz's report that it has entered into an agreement with Japan's Mitsui & Co Ltd to sell down its stake in IHH Healthcare Bhd, marking the start of an asset rationalisation exercise.

In a statement issued on Thursday, Khazanah said it will divest 1.4 billion shares or a 16% stake in IHH Healthcare Bhd to Mitsui & Co Ltd at RM6 per share for RM8.42bil cash.

Following the disposal, Khazanah’s shareholding in IHH will decrease to 26.05% based on the enlarged share capital of IHH after the completion of the acquisition of 30% additional equity interest in Acibadem Saglik Yatirimlari Holding AS by IHH. 

The transaction is subject to relevant regulatory approvals and the completion of the Acibadem acquisition, which was announced earlier on Oct 8.

"This transaction forms an important part of the restructuring of Khazanah’s portfolio, and the proceeds raised will be utilised for new investments and capital requirements.

"Khazanah will continue to be a significant shareholder with representation on the Board of IHH, and will provide stability to the shareholder base of IHH for the foreseeable future," it said.

“The transaction clearly shows the confidence of Mitsui in the growth of the IHH platform. Khazanah remains committed to supporting the group and looks forward to the future success of IHH.

"The divestment is part of Khazanah’s strategy to grow the businesses that we are invested in and to find the appropriate times and value to create liquidity for our future capital and investment needs," said Khazanah managing director Datuk Shahril Ridza Ridzuan.

The transaction is expected to be completed by Q1 2019.