IHH Completes Acquisition Of Island Hospital In Penang For Nearly RM4 Bln

KUALA LUMPUR, Nov 4 (Bernama) -- IHH Healthcare Bhd (IHH) has completed the acquisition of Island Hospital, a 600-bed facility in Penang, for an equity consideration of about RM3.9 billion.

In a statement today, the healthcare provider said the acquisition marks a pivotal step in IHH’s strategic expansion in Malaysia, reinforcing its commitment to elevating healthcare quality and services nationwide and providing patients in the northern region with greater access to world-class care.

“The move reinforces IHH’s role in supporting the Malaysia government’s vision to establish the country as a leading hub for medical tourism, attracting international patients seeking cutting-edge treatment and exceptional care.

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“As Penang continues to establish itself as a top destination for international patients seeking high- quality, cost-effective medical care, this acquisition positions IHH to further contribute to Malaysia’s growing medical tourism aspiration,” it said.

To recap, IHH’s indirect unit Pantai Holdings Sdn Bhd inked an agreement on Sept 4 to acquire Island Hospital for an equity consideration of RM3.92 billion in cash.

Island Hospital and its subsidiaries had a net debt of RM276.3 million as of June 30, 2024.

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With the addition of Island Hospital, IHH now operates 18 hospitals across Malaysia, including 11 Pantai Hospitals, four Gleneagles Hospitals, Prince Court Medical Centre, and Timberland Medical Centre.

“In addition to integrating Island Hospital’s clinical expertise into its network, IHH will explore development opportunities within the hospital's valuable landbank, to future-proof its growth in the region and meet rising healthcare demand from both local and international patients,” said IHH.

IHH group chief corporate officer Ashok Pandit said with the acquisition would enhance IHH’s leadership in healthcare and medical tourism in Malaysia.

“This acquisition underscores our commitment as a group to elevating care and outcomes across our global network, while creating sustainable value for stakeholders through strategic, accretive investments.

“Together with the talented team at Island Hospital, we will draw on our deep expertise and experience to deliver even better patient experience and clinical quality for more patients,” he said.

Meanwhile, IHH Malaysia chief executive officer Jean-François Naa said the addition of Island Hospital marks an important milestone in the group’s commitment to enhancing the quality and accessibility of care in Malaysia.

“Building on our proven track record of operational excellence and successfully integrating acquired assets, we will further strengthen Island Hospital’s capabilities by introducing more advanced treatments and improving patient experiences.

“Our focus remains on providing exceptional care to both local and international patients, while contributing to Malaysia’s growing prominence as a medical tourism hub,” he added.

-- BERNAMA