Will KHAZANAH Sell its 26% Stake in IHH Healthcare?
September 01, 2021
IHH Healthcare Berhad is one of the world’s largest healthcare networks, with 80 hospitals in 10 countries. Through its 100% owned subsidiary PARKWAY PANTAI, it operates a network of 59 hospitals in Asia including Malaysia, Singapore, India, Greater China, Sri Lanka and Brunei. Parkway Pantai is one of Asia’s largest integrated private healthcare groups.
In Malaysia IHH Group operates 16 hospitals comprising 11 Pantai Hospitals, four Gleneagles Hospitals and Prince Court Medical Center. IHH acquired 100% of Prince Court in September 2020. It has in total 2,908 licensed beds.
(IMU) The International Medical University is IHH’s medical education arm. IMU oversees the established higher learning institutions of International Medical College and IMU in Malaysia.
Biggest shareholder in IHH Healthcare
Khazanah Nasional Berhad was the largest shareholder of Singapore and Malaysia listed IHH Healthcare until November 2018 when it sold 16% in IHH to Japan’s Mitsui & Co., Ltd for RM8.42 billion or US$2.76 billion. The sale resulted in Mitsui becoming the single largest shareholder of IHH with a stake of 32.9%. Khazanah’s stake was reduced to 26%.
Khazanah Nasional Berhad is the sovereign wealth fund of Malaysia. It manages the Government’s commercial assets and investments.
Mitsui & Co., Ltd is a top sōgō shōsha or giant international trading company that has a global network spanning 64 countries and total assets in excess of US$112 billion. Its annual revenue is US$72.2 billion.
A Bloomberg report in May 2021, mentioned the breaking news that Japan’s Mitsui & Co may be keen to buy up the balance of Khazanah’s stake in IHH Healthcare and then move to take the hospital group private. Will Khazanah sell its 26% stake to Mitsui?
We have to wait and see what happens next.
* This article is part of our ongoing research on Private Healthcare in Malaysia for a future publication by Sparrow Publishing House.
- Hospital Management. 7 May 2021. Mitsui explores takeover of $11bn hospital group IHH Healthcare. https://www.hospitalmanagement.net/news/mitsui-buyout-report-ihh/
- Parkway Pantai. News Blog. 1 September 2021. https://www.parkwaypantai.com/newsroom/newsblog/malaysia/main-blog/2020/09/16/ihh-healthcare-acquires-prince-court-medical-centre
- Healthcare IT News. 4 September 2020. Dean Koh. https://www.healthcareitnews.com/news/apac/ihh-healthcare-acquires-malaysia-s-prince-court-medical-center-rm102b
- IHH Healthcare Berhad. About us. Home - IHH Healthcare
- Money Control. 3 August 2020. Viswanath Pilla. https://www.moneycontrol.com/news/business/companies/ihh-healthcares-largest-shareholder-mitsui-co-says-it-will-continue-to-execute-fortis-turnaround-plan-5639021.html
- Mitsui & Co., Ltd. https://www.mitsui.com/jp/en/index.html
- New Straits Times. 29 November 2018. Khazanah sells 16 pct of IHH to Mitsui for RM8.42bil. Khazanah sells 16 pct of IHH to Mitsui for RM8.42bil (nst.com.my)
- Khazanah Nasional Berhad. www.khazanah.com.my
- Bloomberg. 6 May 2021. David Ramli & Elffie Chew. https://www.bloomberg.com/news/articles/2021-05-06/mitsui-is-said-to-weigh-buyout-of-11-billion-ihh-healthcare