Khazanah Nasional Berhad announced today that it had agreed to acquire a 16.41% stake in Parkway Holdings Limited, a regional leading fully-integrated healthcare organization for a cash consideration of SGD531.51
million (RM1.23 billion).
The acquisition was made via Khazanah’s wholly-owned subsidiary, Mount Kinabalu Investments Ltd. (“MKI”), which on 29 April 2008 had entered into a Share Purchase Agreement with subsidiaries of private equity funds advised by Symphony Capital Partners Ltd, namely Microchip Holdings LDC, Cobalt Limited and Windjammer Ltd, to acquire on completion, in aggregate 126,550,438 Parkway shares (“Acquisition”).
As at the date of this announcement, MKI holds a 2.46% interest in Parkway and has agreed to acquire, through on-market purchases, a further 1.92% interest in Parkway. Upon completion of the Acquisition and settlement of the on-market purchases, MKI will become a significant shareholder of Parkway with a stake of 160,334,740 ordinary shares representing approximately 20.79% in Parkway.
Khazanah’s Managing Director, Dato’ Azman Mokhtar said, the Acquisition is part of Khazanah’s regional healthcare investment strategy and complements the company’s existing investments in the healthcare sector, namely Pantai Holdings Berhad, Apollo Hospitals Enterprise Ltd and International Medical University (“IMU”).
“Khazanah has worked closely with Parkway and its major shareholder TPG over the last 2½ years to develop and grow the Pantai Group in Malaysia. With the acquisition of this strategic stake, we are looking forward to work more closely with Parkway as we believe that our investment in one of Asia’s leading private healthcare providers will present a strong platform for us to participate in the high growth opportunities of the broader regional healthcare sector,” added Dato’ Azman.
Parkway is a leading fully-integrated healthcare organization in Asia, with one of the largest network of hospitals and healthcare services in the region. It owns Parkway Hospitals Singapore Pte Ltd which runs the East Shore Hospital, Gleneagles Hospital, Mount Elizabeth Hospital and the ParkwayHealth Day Surgery and Medical Centre. It operates a total of 15 hospitals and 48 medical centres and clinics across Asia. The Group is also a major provider of primary healthcare services; radiology services and laboratory services.
Parkway Group Healthcare Pte Ltd also operates over 53 International Patient Assistance Centres across the globe. In Malaysia, Parkway owns stakes and manages the Gleneagles Intan Medical Centre in Kuala
Lumpur and Gleneagles Medical Centre (Penang). It also owns 40% of Pantai Holdings Berhad and manages its 9 hospitals across the country.