IHH: Buys 51% stake in India’s Continental Hospitals for RM167mil

Malaysia’s largest private healthcare provider IHH Healthcare Bhd acquired a 51% stake in Hyderabad, India-based Continental Hospitals Ltd (CHL) for RM166.73mil.

The acquisition comes on the heels of the Competition Commission of Singapore’s blocking of a deal by IHH to acquire Radlink-Asia from Fortis Healthcare Singapore Pte Ltd for RM346.5mil.
The competitions regulator had blocked the deal as the acquisition would have resulted in a substantial lessening of competition in the area of radiology and imaging services for private outpatients in the island-republic.
IHH said in the filing with Bursa that it had acquired 71.09 million shares in CHL, which owns a 750-bed hospital with involvement in “delivering primary, secondary, tertiary and quaternary healthcare services.”
It said the acquisition would not have any effect on its issued and paid-up capital and substantial shareholders’ stakes.
There would also be no material effect on the company’s earnings and net assets for the current financial year ending Dec 31, 2015, it added.
Last week, the company announced the acquisition of five nursing homes in Japan via the injection of RM182.62mil into Godo Kaisha Samurai.

/theSTAR 24-03-2015

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