Mitsui values IHH at a healthy RM49.4b

> Japanese firm will be Malaysian healthcare group’s largest shareholder after increasing its stake to 32.9%

PETALING JAYA: Japan’s Mitsui & Co Ltd is set to emerge as IHH Healthcare Bhd’s largest shareholder via an acquisition of an additional 16% stake from Khazanah Nasional Bhd at RM6 a share, valuing the group at RM49.4 billion.

IHH’s share price hit a high of RM5.79 on the news before closing 25 sen up at RM5.50 with some 15.6 million shares done.

Mitsui will hold a 32.9% interest in the healthcare group, while Khazanah will be left with 26.05%.

The two parties on Wednesday entered into a share purchase agreement for the transaction involving 1.40 billion shares, for RM8.42 billion. The deal is expected to be completed by the first quarter of next year. Mitsui’s last investment in IHH was in 2011.

The acquisition is subject to and conditional upon regulatory requirements and the completion of the issuance of new shares in IHH to Mehmet Ali Aydinlar, Hatice Seher Aydinlar and/or their nominees and Pulau Memutik Ventures Sdn Bhd in its capacity as the nominee of Bagan Lalang Ventures Sdn Bhd.

Khazanah said proceeds from the disposal will be used for new investments and capital requirement and that it will continue to be a significant shareholder with representation on the board of IHH, and provide stability to the shareholder base of IHH for the foreseeable future.

“The transaction clearly shows the confidence of Mitsui in the growth of the IHH platform. Khazanah remains committed to supporting the group and looks forward to the future success of IHH. The divestment is part of Khazanah’s strategy to grow the businesses that we are invested in and to find the appropriate times and value to create liquidity for our future capital and investment needs,” said its managing director, Datuk Shahril Ridza Ridzuan, in a statement.

Mitsui said in a separate statement that it will further support IHH’s growth and pursue opportunities that anticipate high growth such as ancillary service business and other new business in areas such as disease prevention and management, telemedicine and personalised medicine by effectively utilising digital transformation and innovative technology.

Healthcare has been identified as a target growth area in its medium-term management plan announced in May 2017.