IHH Healthcare’s indirect wholly-owned subsidiary Pantai is proposing to fully acquire Island Hospital in Penang, Malaysia, for RM3.9 billion (S$1.17 billion) in cash, the group announced on Wednesday (Sep 4).
The deal entails Pantai fully acquiring the full equity interest in the hospital, comprising 20 million shares.
The proposed acquisition will be funded through the internally generated funds of IHH and its subsidiaries, as well as external borrowings – the proportions of which have yet to be finalised, said IHH Healthcare.
The equity value of Island Hospital was arrived on a cash-free, debt-free basis, and on a willing-buyer, willing-seller basis.
IHH Healthcare said the acquisition will add 600 beds in Penang. It will also realise potential synergies, given that it would then be operating three hospitals on the island with over 1,000 operational beds.
Media outlets had previously reported that IHH Healthcare and Sunway Medical Centre were among bidders for the Penang hospital, which is owned by Affinity Equity Partners.
Shares of IHH closed down 0.5 per cent or S$0.01 at S$1.91 on Thursday, before the announcement.
