KHAZANAH Nasional Bhd, the government's investment arm, is looking at raising more than US$3 billion (RM9.24 billion) from the planned listing of its healthcare subsidiary, Integrated Healthcare Holdings Sdn Bhd (IHH). Business Times also understands that Khazanah had set the second half of the year as the deadline for IHH's initial public offering (IPO). The group has appointed several parties to advise and handle the IPO. At a press conference here yesterday, Khazanah managing director Tan Sri Azman Mokhtar declined to reveal details of the IPO. However, he said it is Khazanah's goal to see IHH listed in 2012. In April last year, Azman reportedly said that IHH would be listed within three years in Singapore or Kuala Lumpur, or possibly via a dual listing on Bursa Malaysia and the Singapore Stock Exchange. At more than US$3 billion, IHH's IPO will be Malaysia's biggest since Petronas Chemicals Bhd's listing in November 2010 which raised US$4.1 billion (RM12.6 billion). Meanwhile, Azman said Khazanah will consult its new Turkish partners to help in the IHH listing. They are Acibadem Group founder Mehmet Ali Aydinlar and private equity fund Abraaj Capital. They own 4.2 per cent and 7.1per cent stakes, respectively, in IHH, after selling their shares in Acibadem Saglik Yatirimlari Holding A.S. (ASYH) to Khazanah and IHH. The listed IHH will have assets of Singapore's Parkway Holdings Ltd, Pantai Hospitals and the International Medical University in Malaysia. The IPO will also include ASYH. The listing of IHH will be in line with the Malaysian government's interest in pushing state entities to divest commercial holdings to attract foreign investors and boost stock market liquidity. "The company will put out the relevant documents in due course," Azman said. Analysts who spoke to Business Times said the timing is right for IHH's listing since Khazanah has added a new chapter to its healthcare portfolio by buying into ASYH. Khazanah owns a 75 per cent direct and indirect stake in ASYH, a Turkish hospital chain that operates 14 hospitals and nine outpatient centres in Turkey. It paid RM3.7 billion for the deal by way of cash and shares. Azman said Khazanah is aiming for IHH to be the world's largest healthcare service provider. Currently, it is among the world's largest healthcare groups. IHH also owns a stake in India's Apollo Hospitals Enterprise Ltd. On whether Khazanah was eyeing a stake in India's Sterling Hospital group, Azman declined to comment. Khazanah has spent US$3.7 billion (RM11.4 billion) on acquisitions of healthcare service providers since 2005, according to Bloomberg data.
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KHAZANAH Nasional Bhd, via its healthcare unit Integrated Healthcare Holdings Sdn Bhd (IHH), will enter new markets like the Middle East, Eastern Europe and Russia in a bid to become the world's largest healthcare service provider. Khazanah's existing portfolio of healthcare assets through IHH includes Parkway Holdings Ltd, Pantai Holdings Bhd and International Medical University. IHH has presence in Malaysia, China, India and Singapore. In India alone, it has an 11.2 per cent stake in Apollo Hospitals. The government investment arm has, via IHH, acquired 60 per cent of Acibadem Saglik Yatirimlari Holding A.S. (ASYH) from Acibadem Group founder and chairman Mehmet Ali Aydinlar and his family, and from Abraaj Capital, a leading private equity manager. Khazanah also bought another 15 per cent direct stake in ASYH from another party. ASYH owns 92 per cent of Acibadem Saglik Hizmetleri ve Ticaret A.S, a leading private healthcare service provider in Turkey, with 14 hospitals and nine outpatient centres in its portfolio. "This is not structured as a one-off deal but an opening of a new chapter between all the parties concerned," said Khazanah managing director Tan Sri Azman Mokhtar at the exchange of documents here yesterday, in conjunction with the completion of the Acibadem acquisition. The acquisition was paid by a combination of cash and newly-issued IHH shares, in a deal worth about RM3.7 billion. The Aydinlar family and Abraaj Capital have emerged as shareholders of IHH, with 4.2 per cent and 7.1 per cent stakes respectively. Aydinlar and Omar Lodhi of Abraaj will sit on the board of IHH. Khazanah, via its wholly-owned special purpose vehicle (SPV) Pulau Memutik Ventures, will retain a 62.1 per cent stake in IHH, while Mitsui Co via its SPV, MBK Healthcare Partners Ltd, will own a 26.6 per cent stake. Aydinlar told reporters at a press conference that Acibadem is looking at expanding its business worldwide, especially in the Middle East, Eastern Europe and Russia. "We are currently among the largest healthcare providers in the world in terms of revenues and the number of beds. Together with Khazanah and the other parties we will aim for greater heights," he said.
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