SINGAPORE (Sept 17): IHH Healthcare is seeking to strengthen its position in Malaysia with the proposed acquisition of entire issued share capital of Prince Court Medical Centre for RM 1.02 billion ($336 million).

In a press release on Tuesday, IHH says its wholly-owned subsidiary, Pantai Holdings, has entered into a conditional share purchase agreement with Pulau Memutik Ventures, a wholly-owned subsidiary of sovereign wealth fund Khazanah Nasional, for the acquisition.

Prince Court Medical Centre owns and operates a private medical hospital located in the “Golden Triangle” area of Kuala Lumpur.

The 277-licensed bed private healthcare facility offers a wide range of medical, surgical and hospital services, including burns management, cancer, gastrointestinal diseases, interventional cardiology, in vitro fertilisation, and rehabilitation medicine.

IHH says the proposed acquisition will allow the group to broaden its service offerings.

It will also add to the group’s clinical talent pool and will allow IHH to gain a larger share of the growing medical tourism market in the Klang Valley.

IHH says PCMC’s strong performance is expected to contribute positively to the future earnings and cash flows of the enlarged group following the completion of the proposed acquisition.

The proposed acquisition, which is expected to be immediately earnings accretive to the group, is expected to be completed in 1Q20.

“We are pleased to be adding Prince Court Medical Centre to our existing network of 15 hospitals across Malaysia. This is a rare opportunity to acquire an attractive and accretive asset in Kuala Lumpur’s ‘Golden Triangle’ that will strengthen IHH’s position in Malaysia while allowing us to capture the growing medical tourism market,” says Dr Kelvin Loh, Chief Executive Officer Designate of IHH.

Shares in IHH closed flat at $1.85 on Tuesday.