PETALING JAYA: Columbia Asia Group now owns 99.12% of subsidiary Columbia Asia Sdn Bhd (CASB) after it completed the purchase of the Employees Provident Fund’s 29.72% interest recently.
Before that, the group’s stake stood at 69.4%.
Columbia Asia Group did not disclose the purchase price, noting that the “transaction between the two parties is under a mutual confidentiality”.
“There is no change in the strategy. We have many exciting plans in the works to grow Columbia Asia Group’s offerings and bring affordable, quality healthcare to more people across Asia,” it told SunBiz in an email response today.
“We will invest not just in additional hospital facilities, but also add to sub-speciality capabilities within our existing hospitals. We will also leverage on digital technologies to make our services even more accessible, efficient and cost-effective to our patients,” it added.
Meanwhile, asked on the reason for the disposal of its stake, the EPF said it had taken the opportunity to exit and take profit on its investment when Columbia Asia Group expressed interest to purchase its share in CASB.
The pension fund added that its investment in CASB was done through its private equity division and its private equity strategy is to secure profits from its investments, mainly through capital gain. The proceeds from the stake disposal would be used for future investments, the EPF added.
CASB, which owns Columbia Asia’s hospitals in Malaysia and Indonesia, is a subsidiary of Columbia Asia Group under Columbia Asia Healthcare Sdn Bhd. It focuses on the Southeast Asian market, with its main operations in Malaysia.
Columbia Asia Healthcare is 100% owned by US-based fund International Columbia US, LLC, which is owned by more than 150 private equity companies, fund management organisations and individual investors.
The group has 12 medical facilities in Malaysia, 12 in India, three in Vietnam, three in Indonesia and one in Kenya.
Source: The Sun Daily