Malaysia: IHH gets shareholder nod for Prince Court acquisition

IHH Healthcare has secured near unanimous support from shareholders in favour of its proposed acquisition of Prince Court Medical Centre for M$1.02bn (US$204m).

At an extraordinary general meeting on Monday, more than 99.99% of non-interested IHH shareholders and proxies voted in favour of the conditional share purchase agreement between IHH’s wholly owned subsidiary, Pantai Holdings and Pulau Memutik Ventures, a wholly owned subsidiary of Khazanah Nasional Berhad.

“Adding Prince Court Medical Centre will empower us to bring our best-in-class care and outcomes to even more patients in Malaysia and aboard,” said Joe Sim, chief executive officer, Malaysia operations division, IHH.

The acquisition will be funded via a combination of internally generated funds and bank borrowings.

In March last year, IHH signed an agreement with Malaysian sovereign wealth fund Khazanah Nasional to look after the day-to-day running of the medical centre.

This follows its acquisition by Khazanah from Malaysian oil and gas company Petronas for what was rumoured to be M$1.4bn. At the time IHH said that it would be given a right of first refusal to acquire the medical centre during a pre-agreed period.

Located in Kuala Lumpur, Prince Court Medical Centre owns and operates a 277-licensed bed private healthcare facility offering a wide range of medical, surgical and hospital services including, among others, burns management, cancer, gastrointestinal diseases, interventional cardiology, in vitro fertilisation, nephrology, occupational health, orthopaedic and rehabilitation medicine.

The centre has struggled with profitability in the past. Accumulated losses until last year were M$1.42bn, but it has turned around. Prince Court Medical Centre posted profits of M$51m for 2018.

IHH expects the acquisition to complete in the first quarter of 2020.