KUALA LUMPUR (April 30): IHH Healthcare Bhd said it has completed the sale of its entire 50% equity stake in the Apollo Gleneagles Hospital Ltd, Kolkata (AGHL) joint venture to Apollo Hospitals Enterprise Ltd.
The divestment is in line with the group’s refreshed strategy, which includes a review of its portfolio and capital deployment to optimise returns for shareholders, said IHH managing director and CEO Dr Kelvin Loh.
“With the monetisation of this non-core asset, we will focus on strengthening our existing healthcare operations across India,” IHH said in a statement.
“Given these challenging Covid-19 times in India, the welfare and safety of our colleagues, the doctors and nurses are our top priorities, as they serve and care for our patients. These are difficult times for all and we will stand together to come out stronger and support the Indian healthcare sector,” said Loh.
IHH had entered into an agreement with Apollo Hospitals in November last year for the disposal of the 50% stake in AGHL, which operates a 750-bed hospital, for RM227.08 million.
With the AGHL divestment completed on April 22, IHH said it will be exploring options on recycling the capital and reviewing the expansion of its footprint, in line with its cluster strategy for capital efficiency and growth in the Indian subcontinent.
India is IHH’s fourth home market, along with Malaysia, Singapore and Turkey. The group is a leading private healthcare operator in the country, with a network of more than 30 hospitals in India.
IHH’s share price fell one sen or 0.2% to close at RM5.38 today, giving it a market capitalisation of RM47.23 billion.
