IHH Healthcare Bhd is selling its entire stake in IMU Health Sdn Bhd (IMUH) to Inbound Education Holdings Sdn Bhd (IEHSB) for RM1.24 billion. It is part of a deal to dispose of assets worth RM1.35 billion.
IHH is expected to gain RM901.98 million from the proposed asset disposal.
IHH said the move aligns with the group’s strategy to divest non-core assets and recycle capital by deploying the proceeds to grow its core healthcare delivery services business. Among IHH’s other leading brand names are Acibadem, Mount Elizabeth, Prince Court, Gleneagles, Fortis, Pantai and Parkway.
The move sees Hong Leong Healthcare Group Sdn Bhd, Singapore’s The Rise Fund Inbound SF Pte Ltd and the Employees Provident Fund Board (EPF) taking significant stakes in IMUH through their vehicle IEHSB. IMUH holds IMU Education, IMC Education Sdn Bhd and IMU Healthcare Sdn Bhd.
IEHSB is a wholly-owned subsidiary of Inbound Education Partners Sdn Bhd (IEPSB), which Hong Leong Healthcare owns (45 per cent), The Rise Fund Inbound SF Pte Ltd (45 per cent) and the Employees Provident Fund Board (EPF) (9.99 per cent).
As part of the IMUH disposal, IHH is also selling a hospital that is still under construction in Kuala Lumpur, together with its assets and liabilities, to Columbia Asia Sdn Bhd (CASB) for RM139 million, less an outstanding bank loan amount of RM38 million as of Dec 31, 2021.
CASB is a wholly-owned subsidiary of Columbia Asia Healthcare Sdn Bhd. Their indirect shareholders are Hong Leong Healthcare Group and global alternative asset firm TPG, holding approximately 49.95 per cent each. In 2019, Hong Leong Financial Group Bhd (HLFG) and TPG inked a deal to acquire Columbia Asia Hospitals in South East Asia for US$1.2 billion.
Based on the original cost of investment in IMU Group of RM308.67 million incurred in 2010 and 2011, IHH is expected to gain RM901.98 million from the proposed disposal. Cash proceeds from the deal will be utilised for general corporate purposes (including debt repayment, capital expenditure, mergers and acquisitions, investments and working capital) over the next 12 months.
The proposed disposal is expected to be completed in the first quarter of 2023.
For the financial year ended Dec 31, 2021, IMUH made a consolidated profit after tax and minority interest of RM54.52 million, while its consolidated net assets were RM376.94 million. — The Health