Friday 29 Mar 2024
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KUALA LUMPUR (June 7): IHH Healthcare Bhd is embarking on disposal exercises worth RM1.35 billion, including a divestment of its entire stake in IMU Health Sdn Bhd (IMUH) to Inbound Education Holdings Sdn Bhd (IEHSB) for RM1.24 billion.

IEHSB is a wholly-owned subsidiary of Inbound Education Partners Sdn Bhd (IEPSB), which is owned by Hong Leong Healthcare Group Sdn Bhd (45%), Singapore’s The Rise Fund Inbound SF Pte Ltd and the Employees Provident Fund Board (EPF) (9.99%).

The Rise Fund was founded by TPG in 2016 with US$13 billion worth of assets under management.  

IMUH holds IMU Education, IMC Education Sdn Bhd and IMU Healthcare Sdn Bhd. 

In conjunction with the IMUH disposal, IHH is also selling a hospital that is still under construction in Kuala Lumpur, together with its assets and liabilities, to Columbia Asia Sdn Bhd (CASB) for RM139 million, less an outstanding bank loan amount of RM38 million as of Dec 31, 2021.

CASB 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 approximately 49.95% each.   

Last January, The Edge Weekly had highlighted private equity firms Southern Capital and TPG as the contenders to acquire IHH’s International Medical University Malaysia. 

In a local bourse filing on Tuesday (June 7), IHH said the move is in line with the group’s strategy to divest its non-core assets and recycle its capital by deploying the proceeds to grow its core healthcare delivery services business.

Based on the original cost of investment in IMU Group of RM308.67 million which was incurred in 2010 and 2011, IHH is expected to gain RM901.98 million from the proposed disposal. Cash proceeds from the deal will be utilised for general corporate purposes (including debt repayment, capital expenditure as well as mergers and acquisitions, investments and working capital) over the next 12 months. 

The proposed disposal is expected to be completed in the first quarter of 2023. 

For the financial year ended Dec 31, 2021, IMUH registered a consolidated profit after tax and minority interest of RM54.52 million while its consolidated net assets came in at RM376.94 million.

IHH’s non-independent non-executive director Tunku Alizakri Raja Muhammad Alias is EPF's representative to the IHH board, while chairman and independent non-executive director Tan Sri Mohammed Azlan Hashim is the board member and chairman of the investment panel of EPF. Given their relationship with EPF, both have abstained and will continue to abstain from deliberations and voting on the proposed transactions at the relevant board meetings of IHH.

Shares in IHH Healthcare ended unchanged at RM6.50 on Tuesday, giving it a market capitalisation of RM57.22 billion. 

Edited ByLee Weng Khuen
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