IHH Healthcare to buy property from YNH Property for RM63 mil

KUALA LUMPUR (Jan 26): IHH Healthcare Bhd will acquire a parcel of freehold land with a five-storey purpose-built private hospital from YNH Property Bhd for a total consideration of RM63 million.

Pantai Medical Centre Sdn Bhd, an indirect wholly-owned subsidiary of IHH, has entered into a sale and purchase agreement (SPA) with YNH Hospitality Sdn Bhd and Kar Sin Bhd, a wholly-owned subsidiary of YNH Property, for the proposed acquisition.

It added that the proposed acquisition is expected to result in rental savings in the long run and will enable Pantai Medical Centre to enjoy appreciation in the value of the property in the future.

The land is held under the title no. HSD 33527, Lot No. PT 17283, Mukim of Lumut, District of Manjung, Perak and measures approximately 19,986 square metres.

Currently, the building is leased to Pantai Medical Centre for a term of 15 years, expiring on May 14, 2029, and being occupied and operating as “Pantai Hospital Manjung”.

The proposed acquisition will be funded through internally-generated funds and/or external bank borrowings.

The filing with Bursa also said the proposed acquisition is not expected to have any material effect on the earnings, net assets or gearing of IHH for the financial year ending Dec 31, 2017.

As of closing, IHH was unchanged at RM6.33, while YNH Property slipped by 1.97% to RM1.49. At current levels, IHH and YNH Property’s market capitalisation stood at RM52.1 billion and RM788.0 million respectively. — theedgemarkets.com