KUALA LUMPUR (Oct 4): Shares in KPJ Healthcare Bhd fell as much as 6.6% to RM1.13 in early trade on Monday as investors reacted to news that Johor Corp (JCorp) and US private equity firm TPG Capital are proposing to take the healthcare group private in an exercise that values it at up to RM5.4 billion. The stock was among the top losers on Bursa Malaysia.
At 10.24am, KPJ shares had pared some losses to trade at RM1.15, still down 4.96% from last Friday’s closing price of RM1.21 — a level the counter had not seen since July 2013.
Some 10.2 million shares were traded. Its market capitalisation stood at RM5.13 billion.
The stock had risen 15% year to date (YTD).
Over the weekend, The Edge Malaysia weekly reported that JCorp and TPG are likely to submit to the KPJ board a proposal to take the group private via a special purpose vehicle that would make an offer to take up the KPJ shares at between RM1.20 to RM1.25 a share.
JCorp holds almost 46% of KPJ, followed by the Employees Provident Fund (EPF) at 13% and Kumpulan Wang Persaraan (Diperbadankan) (KWAP) with a 5.4% stake. JCorp and TPG are said to be in talks with banks to finance the potential deal.
KPJ mainly operates in Malaysia with 28 hospitals and has a small presence in Indonesia and Bangladesh. Although the healthcare group has a smaller market capitalisation than peers such as IHH Healthcare Bhd, KPJ is sought after for its network in the country with other private equity funds said to be eyeing it for this reason.