KPJ said the disposal was part of the restructuring of KPJ hospital operations in Indonesia that were triggered by the challenging business environment, licensing and regulatory requirements imposed on foreign operators like KPJ.
PETALING JAYA: KPJ Healthcare Bhd
has entered into a share sale agreement with PT Nusautama Medicalindo (PTNM) to dispose its Indonesian hospital operations and facilities for an enterprise value of RM150.2mil.
The deal sees KPJ’s wholly-owned units Kumpulan Perubatan (Johor) Sdn Bhd, Crossborder Aim (M) Sdn Bhd and Crossborder Hall (M) Sdn Bhd selling the 75% stake in PT KPJ Medica as well as 100% stake in PT Al-Aqar Bumi Serpong Damai (AABSD) to PTNM.
In a filing with Bursa Malaysia yesterday, KPJ Healthcare stated the disposal was part of the restructuring of KPJ hospital operations in Indonesia that were triggered by the challenging business environment, licensing and regulatory requirements imposed on foreign operators like KPJ.
The proposed sales also marks KPJ’s exit from operating specialist hospitals in Indonesia and allows the group to focus on managing specialist healthcare facilities in Malaysia.
KPJ Healthcare officer in charge Norhaizam Mohammad said proceeds from the divestment will be used to strengthen the group’s position in the local healthcare sector.
“Our focus on enhancing our operational efficiency and expanding our core businesses domestically is perfectly aligned with this objective. Additionally, we are actively seeking new opportunities in other markets to accelerate our growth. Looking ahead to 2023 and beyond, I am confident that we will continue to deliver sustainable value for our stakeholders,” she said in a statement yesterday.
Expected to be completed by the second quarter of 2023 (2Q23), KPJ intends to utilise the cash proceeds from the deal for general corporate purposes which include debt repayment, capital expenditure, working capital, and other estimated expenses of the disposal.
Earlier this year, the group exited its other Indonesian hospital operation, Rumah Sakit Medika Permata Hijau, the sale of which is expected to be concluded by 2Q23.
KPJ noted there were seven entities who participated in the due diligence process and PTNM offered the highest bid.
The proposed disposal also entails the sale of co-shareholder Irfan Jasri’s 25% stake in KPJM. He is the remaining shareholder and commissioner of KPJM.
PTNM will be a 100% equity shareholder of both KPJM and AABSD as a result of the proposed disposal. KPJM is a 200-bed specialist hospital.
