Thursday, April 7, 2011

#Update* Mitsui & Co. buys 30% stake in Khazanah's Integrated Healthcare for RM3.3b

KUALA LUMPUR: Mitsui & Co., Ltd. of Japan is acquiring a 30% strategic stake in Khazanah Nasional Bhd's unit Integrated Healthcare Holdings Sdn Bhd for RM3.30 billion.

Khazanah said on Thursday, April 7 Mitsui's subsidiary would subscribe to 989 million of new ordinary shares or 18% of the enlarged share capital of Integrated Healthcare; and acquire 661 million existing shares or 12% of the enlarged share capital.

'Integrated Healthcare will raise RM1.978 billion as new equity as part of this transaction whilst its Pulau Memutik Ventures would raise RM1.322 billion from the sale in the form of rights to allotment to be renounced in favour of Mitsui's subsidiary upon the fulfillment of condition precedents,' said Khazanah.

PMV and Mitsui's subsidiary will also enter into a shareholders' agreement, upon completion. Mitsui will nominate two members to the boards of Integrated Healthcare and Parkway Holdings Ltd following the completion of the transaction.

Khazanah managing director Tan Sri Azman Mokhtar said Khazanah started discussions with Mitsui 16 months ago and this landmark transaction marks another significant milestone in building the leading regional healthcare franchise.

'We also believe this partnership will be the start of other collaboration between Khazanah and its investee companies and Mitsui in other sectors and geographies that we could work together on.'

Mitsui president and CEO Masami Iijima said this was an excellent opportunity for Mitsui to become a partner of Khazanah and to contribute to the future prosperity of Asia.

'Mitsui believes that Integrated Healthcare will provide solutions to emerging demand of better quality and safe, trustworthy healthcare services.

'Mitsui is determined to contribute to the continuing growth and success of Integrated Healthcare by utilising our global business network. Mitsui also looks forward to developing various activities, through the partnership with Khazanah,' he said.

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