GEORGE TOWN (Aug 6): IHH Healthcare Bhd clarified today it was in talks with “certain shareholders” of the India-based Ravidranath GE Medical Associates Private Ltd — the holding company of Global Hospitals Group — for a potential acquisition.

As such, it has yet to enter into any share purchase agreement or such definitive agreements with any of the shareholders in that regard, said IHH Healthcare in its filing on Bursa Malaysia today.

“Further, IHH is unable to comment, or provide guidance, at this stage, whether such acquisition will be completed, or not,” it said in response to news reports alleging that it has acquired the Global Hospitals Group in India.

According to the report that first appeared in an Indian business daily The Economic Times, IHH Healthcare was said to have acquired a 74% stake in Hyderabad-based Global Hospitals Private Ltd for an equity value of 1,800 crore Indian rupees (RM1.09 billion).

The report, quoting two sources with direct knowledge of the development, said IHH Healthcare had bought over the shareholdings of private equity investor Everstone Capital, Anand Rathi Capital Advisor Pvt Ltd and some individual investors of the unlisted chain specialising in liver transplants.

The remaining 26% would continue to be owned by Global Hospitals founder Dr K Ravindranath, the sources had said.

In its statement today, IHH Healthcare (fundamental: 1.65; valuation: 0.5) said it would make the due announcements if and when such transaction (with Global Hospitals group) is agreed upon.

Its shares closed four sen or 0.65% lower at RM6.07 for a market capitalisation of RM50 billion.

(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.)