STRATEGIC ACQUISITION
KHAZANAH Nasional Bhd is buying Prince Court Medical Centre from Petroliam Nasional Bhd for an undisclosed amount. It has also sealed an agreement with IHH Healthcare Bhd on shared services support and operational initiatives.
KHAZANAH Nasional Bhd is buying Prince Court Medical Centre from Petroliam Nasional Bhd (Petronas) to build up Malaysia’s healthcare services sector.
The price for the 270-bed hospital, set up in late 2007 at a cost of RM544 million, will be decided by June.
Petronas and Khazanah said yesterday they had agreed to a change of ownership at a price “comparable to market assessment”.
Khazanah also sealed a collaboration agreement with its affiliated company, IHH Healthcare Bhd, for shared services support and operational improvement initiatives at Prince Court.
IHH would be given a right of first offer to buy Prince Court during a pre-agreed period, said Khazanah.
Khazanah’s wholly-owned Pulau Memutik Ventures Sdn Bhd will acquire Prince Court from Petronas Hartabina Sdn Bhd.
“We are delighted with this rare opportunity to acquire Prince Court. This strategic acquisition marks another milestone for Khazanah in its mission to build up the healthcare services sector in Malaysia,” said Khazanah managing director Tan Sri Azman Mokhtar in a statement.
He said it was also in line with national aspirations to boost medical tourism.
Khazanah would leverage its experience and expertise to transform Prince Court into a world-class medical tourism-focused hospital, and work towards turning Kuala Lumpur into a destination of choice for quality healthcare, he added.
“We invested in Pantai Holdings Bhd back in 2006, and transformed this platform into what is now known as IHH, the largest emerging markets-listed hospitals operator with over 10,000 beds in 10 countries.
“Working together with IHH, we aim to elevate Prince Court into a leading hospital that delivers world-class healthcare for medical tourists.”
Petronas president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin said it believed Prince Court was ready for its next phase of growth.
“We are confident this transaction will position Prince Court to realise its aspiration of becoming the leading healthcare provider in Asia.
“We are pleased to witness Prince Court’s recent transformation in becoming a self-sustaining and profitable organisation with strengthened financials and solid operational foundation,” said Wan Zulkiflee in a separate statement.
In its financial year ended December 31 2016, Prince Court suffered a net loss of RM4.01 million on the back of a revenue of RM211.29 million. Accumulated losses carried forward stood at RM1.42 billion.
In 2011, it reportedly accumulated losses of RM1.08 billion.