Khazanah Nasional buys Prince Court Medical Centre from Petronas

PETALING JAYA: Khazanah Nasional Bhd is acquiring Prince Court Medical Centre (PCMC) from Petroliam Nasional Bhd (Petronas) for an undisclosed sum, with plans to collaborate with IHH Healthcare Bhd to transform the medical centre.

The strategic investment fund said in a statement today that its wholly owned subsidiary Pulau Memutik Ventures Sdn Bhd has signed a share sale and purchase agreement with Petronas’ wholly owned subsidiary Petronas Hartabina Sdn Bhd for the acquisition.

“This strategic acquisition marks another milestone for Khazanah in its mission to build up the healthcare services sector in Malaysia. Khazanah will leverage all of its experience and expertise to transform PCMC into a world-class medical tourism focused hospital, and work towards turning Kuala Lumpur into a destination of choice for quality healthcare in the region,” it said.

It added that the acquisition is a result of and in line with national level aspirations under, among others, the National Key Economic Areas of the Economic Transformation Programme to boost medical tourism.

Khazanah will acquire PCMC at an agreed price comparable to market assessment, which it did not disclose. The transaction is expected to be completed by the end of the second quarter this year.

In addition to the acquisition, Khazanah has also entered into a term sheet for a collaboration agreement with IHH for shared services support and operational improvement initiatives at PCMC. IHH will be given a right of first offer to acquire PCMC during a pre-agreed period.

“We are delighted with this rare opportunity to acquire PCMC. 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 PCMC into a leading hospital that delivers world-class healthcare for medical tourists,” said Khazanah managing director Tan Sri Azman Mokhtar.

Petronas president and group CEO Tan Sri Wan Zulkiflee Wan Ariffin said PCMC is ready for its next phase of growth to become the leading healthcare provider in Asia.


Accept Ekovest’s takeover offer, Iskandar Waterfront City minority shareholders advised

PETALING JAYA: Independent adviser BDO Capital Consultants Sdn Bhd has advised the minority shareholders of Iskandar Waterfront City Bhd (IWCity) to accept the conditional voluntary takeover offer by Ekovest Bhd.

In its independent advice circular, the adviser said that the cash option is “not fair but reasonable” while the share exchange option is “fair and reasonable”.

Based on its analysis, the cash option is “not fair” as the cash consideration of RM1.50 represents a discount of RM1.56 or 51% to its fair value of RM3.06.

However, the share exchange option is “fair” as the exchange ratio ranges from 1.26 to 1.33, indicating that the value of Ekovest shares to be received by the holders represents a premium of about 26% to 33% over the value of the IWCity shares to be surrendered.

Both the cash option and share exchange option are “reasonable” as IWCity shares have not traded above the offer price of RM1.50 per share for the past three years.

The offer price also represents premiums ranging between 9 sen and 22 sen or 6.4% and 17.2% against the five-day, one-month, three-month, six-month and a discount of 35 sen or 18.9% against the one-year volume-weighted average price.

Although the share exchange option is deemed as more favourable, BDO said the decision to be made would rest entirely on the individual risk appetite and the shareholders are advised to be mindful of possible continuous fluctuations in IWCity and Ekovest share prices.

To recap, Ekovest issued a takeover notice on Dec 18, 2017 to buy a 62% stake in IWCity at RM1.50 per share via a cash option or share exchange option. The takeover offer came after Iskandar Waterfront Holdings Sdn Bhd aborted the planned merger with IWCity.

IWCity’s share price rose 3 sen or 2.2% to close at RM1.37 today, while Ekovest fell 1 sen or 1% to 96 sen.