KUALA LUMPUR: IHH Healthcare Bhd
has proposed the disposal of IMU Health Sdn Bhd and a hospital for an initial total cash consideration of RM1.35bil.
In a filing with Bursa Malaysia, the healthcare group said under a conditional share sale agreement, it will dispose of 1.14 million shares, the entire equity interest, in IMU Health to Inbound Education Holdings Sdn Bhd, a company controlled by Hong Leong Healthcare Group Sdn Bhd (45%), The Rise Fund Inbound SF Pte Ltd (45%) and the Employees Provident Fund (EPF) (9.99%) for an initial consideration of RM1.24bil.
The Rise Fund is a global impact investing platform founded by TPG in 2016 with approximately US$14bil in assets under management.
In conjunction with the disposal, IHH will transfer the ownership of a hospital that is still under construction to a newly incorporated holding company for sale to Columbia Asia Sdn Bhd for an initial consideration of RM139mil, less an RM38mil outstanding bank loan.
Columbia Asia is a wholly-owned subsidiary of Columbia Asia Healthcare Sdn Bhd, whose indirect shareholders are Hong Leong Healthcare Group and global alternative asset firm TPG, holding about 49.95% each.
Under the current ownership structure, IMU Health owns the entire issued share capital of IMU Education Sdn Bhd, IMC Education Sdn Bhd, IMC Healthcare Sdn Bhd and IMU Healthcare Sdn Bhd.
IMU Healthcare in turn owns a 60% stake in IMU Dialysis Sdn Bhd while IMU Education holds the hospital.
According to IHH, the proposed disposals are in line with its stated strategy of divesting its non-core assets and recycling IHH's capital by deploying the proceeds to grow its core healthcare delivery services business.
"The cash proceeds received from the Proposed Disposals will be utilised towards general corporate purposes (including debt repayment, capital expenditure as well as mergers and acquisitions, investments and working capital) over the next 12 months after completion of the proposed disposals," it said.
Following the completion of the transactions, the IMU group will cease to be subsidiaries of IHH.
In the financial year ended Dec 31, 2021, IMU Group contributed revenue of RM252.72mil, or about 1% of the total audited consolidated revenue of IHH and its subsidiaries, and profit after tax and minority interest (Patmi) of RM54.52mil, about 3% of the PATMI of the IHH group.
Two members of IHH's board - non-independent non-executive director Tunku Alizakri Raja Muhammad Alias and chairman and independent non-executive director Tan Sri Mohammed Azlan Hashim - have abstained from deliberations and voting on the proposed transactions by virtue of their ties with the EPF and its stake in Inbound Education.
