KUALA LUMPUR, Sept 4 — IHH Healthcare Bhd’s (IHH) indirect wholly-owned subsidiary, Pantai Holdings Sdn Bhd, has entered into a sale and purchase agreement with Comprehensive Care Sdn Bhd to acquire 100 per cent interest in Island Hospital Sdn Bhd for RM3.92 billion in cash.

In a filing to Bursa Malaysia today, IHH said the proposed acquisition entailed the acquisition of 20 million ordinary shares in Island Hospital.

It added that the proposed acquisition would be funded via internally generated funds and external borrowings.

"The funding mix will be determined at a later stage after taking into consideration the internal cash requirements, gearing level and interest costs of IHH Group,” said IHH, adding that the proposed acquisition offered a strategic opportunity to acquire a leading 600-bed capacity private hospital in Penang.

It added that the exercise would enable the group to consolidate and solidify its presence in Penang and strengthen its competitive position across Malaysia.

Post-acquisition, the group would operate three hospitals in Penang, namely Island Hospital, Gleneagles Hospital Penang and Pantai Hospital Penang, with a total of over 1,000 operational beds.

Barring unforeseen circumstances, IHH said the proposed acquisition is expected to be completed by year-end.

In a separate statement, the group said it expects more than RM200 million in synergies over the next five years following the acquisition.

It noted that Island Hospital could enhance its operational efficiency by aligning on commercial practices and operations with IHH, including consolidating procurement.

"Island Hospital’s landbank is valued at RM223.4 million, with approvals secured for future development.

"This would future proof IHH Healthcare’s growth in the region and meet increasing healthcare demand from both local and foreign patients,” added IHH. — Bernama