IHH Healthcare sells 50% stake in Indian JV to partner for RM227m cash

IHH Healthcare sells 50% stake in Indian JV to partner for RM227m cash
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KUALA LUMPUR (Nov 12): IHH Healthcare Bhd is selling its 50% stake in an Indian joint venture (JV) to its partner Apollo Hospitals Enterprise Ltd for RM227.08 million cash or 4.1 billion Indian rupees.

According to a bourse filing on the National Stock Exchange of India made by Apollo Hospitals yesterday, Apollo Hospitals will be acquiring a 50% stake held by IHH’s Singaporean unit Gleneagles Development Pte Ltd in Apollo Gleneagles Hospital Ltd (AGHL), Kolkata.

Following the acquisition, AGHL would become a 100%-owned subsidiary of Apollo Hospitals.

AGHL runs a 750-bed multi-speciality hospital in a 50:50 JV between Apollo Hospitals and IHH, where the latter is selling its stake to exit the venture.

In order to fund the purchase, Apollo’s board has agreed to it raising RM830.56 million or 15 billion rupees via qualified institutional placement (QIP) to help buy out IHH.

IHH shares were up by 0.37% or two sen higher at RM5.47 at 9.44am, valuing it at RM48.01 billion. It saw 37,100 shares transacted.

Lam Jian Wyn