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Parkway Holdings, the target of a $3.5 billion buyout bid by Khazanah Nasional Bhd., posted a 25% gain in second-quarter operating profit after admissions at its hospitals increased.
Profit rose to $37.5 million in the three months ended June 30, from $30.1 million a year earlier, Parkway, Asia’s biggest hospital operator, said today. Net income fell 9% because a $17.2 million write-back in the second quarter of 2009 inflated earnings in that period.
Profit rose to $37.5 million in the three months ended June 30, from $30.1 million a year earlier, Parkway, Asia’s biggest hospital operator, said today. Net income fell 9% because a $17.2 million write-back in the second quarter of 2009 inflated earnings in that period.
“Hospital and health-care operations across our network have performed well, supported by an improving global economy and steady demand for quality health-care services,” Chief Executive Officer Tan See Leng said in a statement.
Parkway, which has more than 3,400 beds in Asia, said it’s designing a new hospital in Malaysia’s northwestern state of Perak after receiving approval from the health ministry. Khazanah, a Malaysian sovereign wealth fund with about a 24% stake in Parkway, offered S$3.95 a share in cash last month to take over the rest of the company.
Parkway fell 1.8% to $3.75 as of 2:35 p.m. in Singapore trading, compared with a 0.9% decline in the benchmark Straits Times Index.
HIGHER HOSPITAL REVENUE
Second-quarter sales at Parkway gained 9% to $271.6 million. Revenue from hospitals in Singapore climbed 11% as admissions and day cases rose and the company attracted more patients needing complex treatments such as brain surgery. Sales from hospitals outside the city-state jumped 18%, boosted by demand for facilities in Malaysia and India.
Khazanah’s offer, which surpassed a bid by New Delhi-based Fortis Healthcare, values Parkway at $4.5 billion and closes Aug. 16.
Parkway would be held under the Malaysian sovereign wealth fund’s Integrated Healthcare unit, which has stakes in Pantai Holdings Bhd. and IMU Health Sdn Bhd. in Malaysia, as well as India’s Apollo Hospitals Enterprise. In Singapore, Parkway’s operations include the Gleneagles hospital, located close to the central Orchard Road shopping belt. The company also manages a real estate investment trust and provides health-care education.
