IHH Healthcare completes divestment of AGHL JV

IHH Healthcare managing director and CEO Dr Kelvin Loh

KUALA LUMPUR: IHH Healthcare Bhd has completed the sale of its entire 50% equity stake in its Apollo Gleneagles Hospital Ltd, Kolkata (AGHL) joint venture to Apollo Hospitals Enterprise Limited (Apollo).

“Our divestment of the AGHL joint venture is aligned with our ‘Refreshed Strategy’, which includes a review of our portfolio and capital deployment to optimise returns for shareholders.

“With the monetisation of this non-core asset, we will focus on strengthening our existing healthcare operations across India,” managing director and CEO Dr Kelvin Loh said in a statement.

“Given these challenging COVID-19 times in India, the welfare and safety of our colleagues, the doctors and nurses are our top priorities, as they serve and care for our patients. These are difficult times for all and we will stand together to come out stronger and support the Indian healthcare sector,” he added.

IHH said the disposal was in line with the group’s continued execution of its ‘refreshed strategy’, of which one pillar is to review its portfolio and capital deployment to prioritise returns.

Given the group’s strategic intent of strengthening its existing healthcare operations across India, IHH entered into a share purchase agreement to divest its entire equity stake in AGHL in November 2020.

India is the group’s fourth home market, together with Malaysia, Singapore and Turkey.

Between Fortis and IHH’s Global Hospitals and Continental Hospitals, IHH is a leading private healthcare operator in India with a network of more than 30 hospitals.

“With the AGHL divestment having completed on April 22, 2021, IHH will explore options on recycling the capital and reviewing the expansion of our footprint in line with our cluster strategy for capital efficiency and growth in the Indian sub-continent,” the healthcare operator said.

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