SHAH ALAM (Mar 31): KPJ Healthcare Bhd is acquiring Crossborder Hall (M) Sdn Bhd and Crossborder Aim (M) Sdn Bhd from Al-Aqar Healthcare REIT Bhd for a combined RM4.718 million.

In a filing with Bursa Malaysia, KPJ said its wholly-owned subsidiary Kumpulan Perubatan (Johor) Sdn Bhd today signed a share sale agreement (SSA) with AmanahRaya Trustees Bhd, the trustee for Al-Aqar Healthcare REIT, for the proposed acquisition.

Crossborder Hall and Crossborder Aim are special-purpose vehicles set up by Al-Aqar Healthcare REIT (fundametal: 0.9; valuation: 1) for the purpose of holding properties in Indonesia. The two companies are wholly-owned subsidiaries of Al-Aqar Healthcare REIT.

KPJ (fundamental: 0.95; valuation: 1.5) said the proposed acquisition was to streamline its operations in Indonesia for the purpose of, among others, improving operational efficiency.

KPJ said the proposed acquisition will enable the group to have more flexibility in managing its Indonesian operations.

The purchase consideration will be funded by internal funds.

The proposed acquisition is expected to be completed by the third quarter of this year.

KPJ's major shareholder is Johor Corp (JCorp) with a 44.82% stake. Damansara REIT Manager Sdn Bhd, the manager of Al-Aqar, is a wholly-owned subsidiary of Damansara Assets Sdn Bhd, which in turn is a wholly-owned subsidiary of JCorp.

Accordingly, JCorp shall abstain from voting in respect of its direct and indirect shareholdings in KPJ on the resolution pertaining to the proposed acquisition to be tabled at the forthcoming extraordinary general meeting.

At 3.50pm, KPJ's share price was at RM4.25, down one sen or 0.23%, giving it a market capitalisation of RM4.403 billion.

Al-Aqar Healthcare REIT was traded unchanged at RM1.38, translating into a market capitalisation of RM960.79 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)