KHAZANAH Nasional Bhd’s Turkish unit plans to hive off its health-insurance business, Acibadem Sigorta, for US$300 million, as Ankara pushes for cheaper health insurance.
AUNIT of Khazanah Nasional Bhd plans to sell its Turkish health insurance business to focus on its home market, according to three people with knowledge of the matter.
Khazanah’s Avicennia Capital hired Barclays Plc to manage the disposal of its Istanbul-based health, life and personal accident provider, said two people.
Avicennia, which expects as much as US$300 million (RM1.1 billion) from the sale, will invite potential investors later this month, one person said.
The potential sale of Acibadem Sigorta, formally known as Acibadem Saglik ve Hayat Sigorta AS, comes after Turkish President Recep Tayyip Erdogan last year pushed a range of measures, including cheaper health insurance and tax breaks, to bolster his support and boost economic growth that slowed in the wake of July’s failed coup.
Turkey’s health insurance premiums increased 19 per cent to five billion liras (RM5 billion).
Barclays and Khazanah declined to comment, while calls to numbers provided on Acibadem Sigorta’s website were not answered.
Acibadem Sigorta is the largest health insurer by premiums in the country after Allianz SE, with an 18 per cent market share, according to data from the Turkish Association of Insurance Companies.
Turkey’s insurance industry has lured several international investors over the past decade, including Aviva Plc, Cigna Corp., Achmea BV and Sompo Holdings Inc.
Avicennia, the insurance holding unit of Khazanah, bought 90 per cent of Acibadem Sigorta for US$252 million in 2013 from founder Mehmet Ali Aydinlar and Abraaj Capital Ltd.
It bought the remainder after the company stopped trading its shares on Borsa Istanbul.
In 2012, the sovereign wealth fund’s IHH Healthcare Bhd unit bought 75 per cent of Acibadem Saglik Yatirimlari Holding AS, then Turkey’s largest hospital chain also founded by Aydinlar, in an acquisition that valued the business at US$1.68 billion.
Khazanah Nasional Bhd Khazanah unit, Avicennia Capital, has hired Barclays Plc to manage the disposal of its Istanbul-based health, life and personal accident provider, say sources.