IHH weighing RM4.2bil sale of China hospitals

The group is in discussions with potential advisers on a possible sale of Parkway China, the people said, asking not to be named as the information is private.

KUALA LUMPUR: IHH Healthcare Bhd, a hospital group, is considering the potential sale of its China unit, in a deal that could value the chain at as much as US$1bil (RM4.2bil), according to people familiar with the situation.

The group is in discussions with potential advisers on a possible sale of Parkway China, the people said, asking not to be named as the information is private.

Taikang Insurance Group and Shanghai Hongxin Medical Investment Holding Co are also weighing participating in the sale, the people said.

Taikang is a minority shareholder in the group’s mainland China portfolio, while Shanghai Hongxin holds a stake in one of its hospitals, according to a statement.

Deliberations are ongoing and may not lead to a transaction, the people said.

A representative for IHH Healthcare declined to comment.

Representatives for Taikang and Shanghai Hongxin didn’t immediately respond to requests for comment.

Shares in IHH rose as much as 0.6% yesterday in Kuala Lumpur, giving the company a market value of nearly US$14bil (RM58.7bil). The stock has climbed 21% this year.

Parkway China opened its first medical centre in Shanghai in 2006, according to its website.

It acquired medical and dental clinic World Link Group in 2007 and has facilities in Shanghai, Suzhou and Chengdu. — Bloomberg