Khazanah sells Malaysian hospital for $244m

Khazanah acquired 100% of Prince Court from Petroliam Nasional last year for an undisclosed amount in a deal that featured a collaboration agreement with IHH. Khazanah holds a 26% stake in IHH, one of the largest healthcare providers globally, which it leverages as a strategic platform in the sector.

“This is a rare opportunity to acquire an attractive and accretive asset in Kuala Lumpur’s Golden Triangle that will strengthen IHH’s position in Malaysia while allowing us to capture the growing medical tourism market,” Kelvin Loh, CEO designate of IHH, said in a statement.

Prince Court owns and operates a 277-licensed bed private facility offering a range of medical, surgical and hospital services. These include burn management, cancer, gastrointestinal diseases, interventional cardiology, IVF, nephrology, occupational health, orthopedic and rehabilitation medicine.

Future development will be supported by IHH’s existing network of 15 hospitals in Malaysia as well as its local medical education arm, which is associated with the International Medical College and International Medical University.  IHH’s global operations employ some 55,000 people across 83 hospitals in 12 countries.

Khazanah created IHH as a holding vehicle for its global healthcare assets after acquiring Malaysian hospital operator Pantai Holdings in 2006. Other assets rolled into IHH included Singapore's Parkway Holdings and India's Apollo Hospitals, which was divested in 2017. Khazanah has gradually reduced its holding in IHH as part of a portfolio restructure, most recently selling a 16% stake to Mitsui & Co for about $2 billion.

IHH expects its acquisition of Prince Court to be completed in the first quarter of 2020.

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• Topics
• Southeast Asia
• Exits
• Healthcare
• Open market
• Malaysia
• Khazanah Nasional