KUALA LUMPUR (Oct 23): IHH Healthcare Bhd is reportedly in talks to sell two of its major assets in India back to their original founder-promoters.
The healthcare group has initiated discussions to cash out of its 62% stake in Hyderabad-based Continental Hospitals and 74% in Global Hospitals, by selling them back to the promoter family, Economic Times reported, quoting multiple sources.
"IHH is believed to be open to divesting its stakes at almost half the value at which it originally bought them," read the report, adding that alleged mismanagement and differences between promoters and IHH are the major reasons behind IHH's move to exit.
According to the report, Continental Hospitals has a capacity of 750 beds while Global Hospitals has a combined capacity of approximately 2,000 beds spread across Hyderabad, Mumbai, Bangalore and Chennai.
In 2015, IHH acquired a 51% stake in Continental Hospitals for about Rs 281 crore (US$45.4 million) and subsequently increased it to 62%. In the same year, it also purchased a 74% stake in Global Hospitals for close to US$200 million (Rs 1,300 crore), it added.
Continental and Global Hospitals were later consolidated and integrated under the Gleneagles brand name.
IHH's spokesperson has yet to respond to The Edge's request for comments at the time of writing.
As at 3.31pm, shares in IHH were traded 2 sen or 0.35% lower at RM5.67 apiece, after 1.44 million shares changed hands.