Mitsui largest shareholder in IHH with 32.9 per cent stake
KUALA LUMPUR: The acquisition of a 16 per cent equity interest in IHH Healthcare Bhd by Mitsui & Co Ltd will make the Japanese company the largest shareholder in Asia’s largest private hospital group, with a 32.9 per cent stake.
This follows the announcement by Khazanah Nasional Bhd on the divestment of its 16 per cent stake in IHH to Mitsui for RM8.4 billion, thus reducing its shareholding to 26.05 per cent.
IHH is one of Asia’s largest private hospital group, operating 50 hospitals with over 12,000 beds in nine countries, including Singapore, Malaysia, Turkey, and India.
Mitsui, which has been investing in IHH since 2011, said it had been supporting IHH’s geographical and business expansion by introducing local partners and advanced healthcarerelated services of developed countries.
“During the six-year period from 2011 up to 2017 both IHH ‘s EBITDA (earnings before interest, tax, depreciation and amortisation) and the number of hospital beds recorded more than a three-fold increase.
“Leveraging on its comprehensive strengths,
During the six-year period from 2011 up to 2017 both IHH ‘s EBITDA (earnings before interest, tax, depreciation and amortisation) and the number of hospital beds recorded more than a threefold increase.
Mitsui will continue to support IHH’s management,” it said in a statement.
In the company’s medium-term management plan announced in May 2017, healthcare was selected as a target growth area.
“With the continuous population growth, it is projected that more than half of the population will continue to be in Asia.
“Demand for medical care is rapidly increasing with economic growth and aging whereas Asia continues to face a shortage of hospital beds and doctors,” it added.
Taking this macro-environment, Mitsui said it would build and expand its healthcare ecosystem with IHH at its core.
“Mitsui will further support IHH’s growth and also pursue opportunities that anticipates high growth and by effectively utilising digital transformation and innovative technology,
“Mitsui will contribute to further develop healthcare services in Asia in terms of access, quality and efficiency and contribute to creating a healthy society,” it said.
Meanwhile, the Japanese company said the acquisition was not completed yet and was subject to and conditional upon regulatory requirements in India.
“We believe that the financial impact of the additional share acquisition to the fiscal year ending March 2019 should be limited,” it added. — Bernama
Khazanah Nasional Bhd