KUALA LUMPUR (April 29): IHH Healthcare Bhd (IHH) said it will own 72.26% of Ravindranath GE Medical Associates Private Limited (Global Hospitals) in India upon the conversion of compulsory convertible preference shares (CCPS).

According to IHH, Global Hospitals had on April 26 cancelled 3.16 million shares allotted to Global Hospitals Private Limited (GHPL) on Feb 5, upon the conversion of 277,174 CCPS with face value of 1,000 rupees per CCPS.

Pursuant to the cancellation, Dr K. Ravindranath and his affiliates (spouse, daughter and GHPL) collectively hold 24.16% equity interests in Global Hospitals on a fully-diluted basis.

Meanwhile, IHH Group’s interest in Global Hospitals will be 72.26% on a fully-diluted basis.

“The cancellation of shares does not have any effect on IHH’s issued and paid-up capital and substantial shareholders’ shareholdings.

“There shall be no material effect on the earnings per share, net assets or gearing of IHH for the financial year ending Dec 31, 2016, arising from the cancellation of the cancelled shares,” IHH told Bursa Malaysia today.

Recall on Aug 25, 2015, IHH acquired a 73.4% stake in the Indian-based hospital for RM819 million.

The hospital operator said the conversion of the CCPS will only take place after the occurrence of certain pre-determined events, as stated in agreements entered into on Aug 28, 2015.

The cancellation of shares and reinstatement of 277,174 CCPS would take retrospective effect from Feb 5.

IHH closed down 2 sen or 0.3% at RM6.55 today, for a market capitalisation of RM53.79 million.