Sunday, April 10, 2011

Khazanah plans to sell healthcare support concessions

KUALA LUMPUR: Khazanah Nasional Bhd plans to sell its healthcare support concessions, valued at around RM150 million, to focus on its core healthcare services business.

It has hired an adviser, believed to be PricewaterhouseCoopers (PwC), to manage the sale of Pantai Medivest Sdn Bhd, which offers services like laundry to government hospitals and Pantai Fomema Sdn Bhd, which provides foreign worker health checks.

"We are in the process of disposing it. We are in talks with a few parties," said a Khazanah spokesperson. He declined to name the interested parties.

Khazanah wants to focus on its main hospital business which comes under Integrated Healthcare Holdings Sdn Bhd. This unit runs Singapore's Parkway Holdings, the region's biggest hospital operator, Malaysia's Pantai Holdings Bhd, and holds a small stake in Apollo Hospitals, India's biggest hospital chain.

Although the process has been going on for a few years, pricing is the main hurdle for the sale. The fact that the concessions are expiring this year and next also complicates matters.

Pantai Medivest's 15-year concession ends in 2011 while Fomema's contract runs out in 2012.

A search with Companies Commission of Malaysia reveals that in the financial year ended December 31 2008, Pantai Fomema made a profit after tax of RM41.58 million on the back of RM235.87 million revenue.

The company has current assets of RM71.7 million and is free of debt, with reserves of RM58.87 million.

Pantai Medivest made RM207.8 million revenue for 2008 and a profit after tax of RM14.8 million, documents from the commission showed. - By Shahriman Johari

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