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MALAYSIA'S state investment arm Khazanah Nasional is to become a major shareholder of Singapore-listed Parkway Holdings, which has medical operations over the Causeway.
This is after the completion of a deal, unveiled yesterday, for Khazanah to buy a further 18.33 per cent stake in the company for $581.46 million.
Khazanah already had a 2.46 per cent stake in Parkway.
News of the deal sent Parkway shares soaring 8.8 per cent to an intra-day high of $3.70 before closing 10 cents up at $3.50 on 21.79 million units traded.
Earlier this month, Parkway shares slumped badly after the company announced a steeply discounted rights issue to raise $785.7 million.
Khazanah, via its unit Mount Kinabalu Investments, will buy 126.55 million Parkway shares from subsidiaries of private equity funds advised by Symphony Capital Partners for $4.20 each.
The deal is expected to be completed on May 14.
Khazanah is also buying an additional 14.82 Parkway million shares on the open market for $3.37 apiece, with settlement taking place tomorrow.
The purchases will raise Khazanah's total stake in Parkway to 20.79 per cent.
Managing director Azman Mokhtar said the acquisition was part of Khazanah's regional health-care investment strategy and complemented its existing investments in the health-care sector.
He said Khazanah had worked closely with Parkway and its major shareholder, TPG, over the last two-and-a-half years to develop and expand the Pantai Group in Malaysia.
'Our investment in one of Asia's leading private health-care providers will present a strong platform for us to participate in the high growth opportunities of the broader regional health-care sector,' he added.
Parkway operates 15 hospitals and 48 medical centres and clinics across Asia, including the Gleneagles Hospital and Mount Elizabeth Hospital in Singapore.
In Malaysia, Parkway owns stakes and manages the Gleneagles Intan Medical Centre in Kuala Lumpur and Gleneagles Medical Centre (Penang). It also owns 40 per cent of Malaysia's Pantai Holdings and manages Pantai's nine hospitals in Malaysia.
Analysts said paying $4.20 per Parkway share, a premium of about 20 per cent over its last-traded price, signalled Khazanah's keen interest in Parkway.
DBS Vickers analyst Andy Sim said: 'This will help Parkway in its further expansion in Malaysia due to Khazanah's position there.'
alfoo@sph.com.sg
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'Our investment...will present a strong platform for us to participate in the high growth opportunities of the broader regional health-care sector.'
DATUK AZMAN, explaining Khazanah's decision to raise its Parkway stake
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