Ze­con sells 49% stake in unit for RM155mil

The Star Malaysia - StarBiz - - News - By JACK WONG [email protected]­tar.com.my

KUCHING: Ze­con Bhd is dis­pos­ing of a 49% eq­uity in­ter­est in wholly-owned sub­sidiary Ze­con Medi­care Sdn Bhd to the Sarawak Gov­ern­ment’s in­vest­ment arm for RM155mil cash.

Ze­con Medi­care has a 30-year con­ces­sion for the pro­posed chil­dren’s spe­cial­ist hos­pi­tal, Univer­siti Ke­bangsaan Malaysia (UKM), in Cheras. The new 243-bed hos­pi­tal is ex­pected to be com­pleted in Novem­ber 2018.

The hos­pi­tal project, cost­ing RM606mil, is built through a pub­lic-pri­vate part­ner­ship on a build, lease, main­tain and trans­fer con­cept. The pro­posed hos­pi­tal will also have 54 apart­ment units to pro­vide fam­ily-cen­tred care.

Ze­con Medi­care inked a share sale agree­ment with Sarawak State Fi­nan­cial Sec­re­tary In­cor­po­rated for the dis­posal of 3.92 mil­lion shares here yes­ter­day.

Ze­con Medi­care manag­ing di­rec­tor Datuk Zainal Abidin Ah­mad said the sale of the 49% stake in Ze­con Medi­care was based on the group’s good part­ner­ship with the Sarawak Gov­ern­ment and to lever­age on the lat­ter’s strong fi­nan­cial strength.

Zainal, who is also Ze­con group manag­ing di­rec­tor, said the board be­lieves the pro­posed dis­posal was timely and pro­vided an op­por­tu­nity for the com­pany to par­tially mon­e­tise its in­vest­ment in Ze­con Medi­care at an at­trac­tive price.

The pro­posed share sale deal is ex­pected to be com­pleted by the first half of 2018.

From the sale pro­ceeds, Zainal said RM70mil would be used to pare down bank bor­row­ings, which stood at RM350.4mil, while RM84.8mil would be for the group’s work­ing cap­i­tal.

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