PETALING JAYA: IHH HEALTHCARE BHD has secured the green light from its shareholders for the proposed acquisition of Prince Court Medical Centre (PCMC).
The healthcare group said 99.99% of non-interested IHH shareholders and proxies had voted in favour of the conditional share purchase agreement at an EGM yesterday.
The agreement, between IHH unit Pantai Holdings Sdn Bhd and Khazanah Nasional Bhd’s unit, Pulau Memutik Ventures Sdn Bhd, is for the acquisition of the entire issued share capital of PCMC for RM1.02bil.
Barring unforeseen circumstances and pending regulatory approvals, the group expects the proposed acquisition to be completed in the first quarter of 2020.
“This moves the group closer to strengthening its market position in Malaysia and allowing it to better serve patient needs in the country, ” it said in a statement.
In September, Khazanah Nasional, in line with its revised mandate, had proposed to divest its 100% stake in PCMC to its healthcare platform, IHH Healthcare.
The sovereign wealth fund said the related-party transaction (RPT) would involve 100 million ordinary shares and 35,176 redeemable preference shares in PCMC.
Last month, independent adviser RHB Investment Bank advised non-interested shareholders of IHH Healthcare to approve the purchase.
The investment bank, in its independent advice, said the overall terms of the sale and purchase agreement were “reasonable” and “not detrimental” to the interest of the non-interested shareholders of IHH Healthcare.
PCMC is a 277-licensed bed private healthcare facility offering a wide range of services including burn management, cancer, gastrointestinal diseases, interventional cardiology and in-vitro fertilisation.
IHH Healthcare, in the statement yesterday, said PCMC was a profitable operation that is expected to enhance group revenue and income stream, and contribute to its long-term growth.
Once the transaction is completed, PCMC will become IHH Healthcare’s 16th hospital in Malaysia.
“With a broader network and stronger cluster of specialised tertiary hospitals in the Klang Valley, supported by a deeper clinical talent pool, IHH Healthcare can offer a wider array of services and take on more complex cases.
“This will make our facilities even more compelling for both local and foreign patients, and further reinforce Malaysia’s attractiveness as a medical travel destination, ” IHH Healthcare’s CEO of the Malaysia Operations Division, Joe Sim, said.
PCMC medical director Datuk Dr Kuljit Singh said PCMC, as part of the IHH Group, would be able to leverage on its scale and track record to unlock greater synergies and enhance its suite of service offerings and delivery of value-based care.
IHH Healthcare’s share price closed two sen lower at RM5.25.
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