Khazanah Nasional has agreed to sell a top-tier hospital in Malaysia’s capital to IHH Healthcare, Asia’s biggest private hopsital group and one of its portfolio companies, as it continues to dispose healthcare assets.
Malaysia’s soverign wealth fund has struck a deal worth M$1.02 billion ($244 million) with IHH for the sale of Prince Court Medical Centre, a 277-bed hospital located within the Golden Triangle business district of Kuala Lumpur.
The resort-styled hospital was named the world’s top hospital for medical tourists in 2013 and 2014. Khazanah bought it from state-owned oil and gas company Petronas for an undisclosed price last year.
Prince Court Medical Centre will add to IHH’s existing network of 15 hospitals located across Malaysia, mostly under the Gleneagles and Pantai brands.
The transaction marks Khazanah’s yet another divestment in the healthcare sector, having already sold stakes in IHH for multiple times over the last few years. In the latest deal in November last year, Khazanah sold a 16% stake in IHH to Japan’s Mitsui Group for $2 billion.
“Given the recent change in Khazanah’s refreshed mandate, the decision was made to sell Prince Court to IHH, Khazanah’s healthcare platform,” Khazanah managing director Datuk Shahril Ridza Ridzuan said in a statement.
“Khazanah is confident that Prince Court will further benefit from IHH’s wealth of experience in providing premium healthcare, while solidifying IHH’s position as a leading Malaysian healthcare operator, where we remain as a substantial shareholder with a 26.04% stake.”
Khazanah expects the deal to be completed in the first quarter of next year.
