IHH shareholder Khazanah to acquire Prince Court Medical Centre from Petronas

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KUALA LUMPUR (March 22): Khazanah Nasional Bhd is acquiring Petroliam Nasional Bhd’s (Petronas) 100% interest in Prince Court Medical Centre Sdn Bhd (PCMC) at a price to be determined by June. 

Concurrently, Khazanah has entered into a term sheet for a collaboration agreement with its dual-listed healthcare unit IHH Healthcare Bhd to improve the operations of PCMC. 

“IHH will be given a right of first offer to acquire Prince Court Medical Centre Sdn Bhd during a pre-agreed period,” IHH said in a filing to Bursa Malaysia today. 

This is in line with a report by The Edge Malaysia in its Jan 29-Feb 4 edition that quoted sources as saying IHH was in talks to buy PCMC.  

Petronas, in a statement today, said its wholly-owned unit Petronas Hartabina Sdn Bhd has inked a share sale and purchase agreement with Khazanah’s wholly-owned unit Pulau Memutik Ventures Sdn Bhd (PMV) for the acquisition.  

Under the agreement, Khazanah will acquire PCMC at an agreed price comparable to market assessment, payable upon completion of the transaction, which is anticipated at the end of 2Q18, Petronas said.

“Petronas is pleased to witness PCMC’s recent transformation in becoming a self-sustaining and profitable organisation with strengthened financials and solid operational foundation,” Petronas president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin said.

“Petronas believes PCMC is ready for its next phase of growth and we are confident this transaction will position PCMC to realise its aspiration of becoming the leading healthcare provider in Asia,” Wan Zulkiflee added. 

On the other hand, the term sheet between IHH and PMV underlined a collaboration “for shared services support and operational improvement initiatives at PCMC”. Khazanah, through PMV, owns 40.91% of IHH. 

Shares of IHH Healthcare closed 7 sen or 1.15% lower at RM6.02 today, giving the group a market capitalisation of RM49.6 billion.