IHH’s Prince Court purchase depends on turnaround
Khairul Khalid | 30 Mar 2018 00:30
Prince Court Medical Centre is being sold as part of Petronas' consolidation efforts

Khazanah Nasional Bhd’s purchase of Prince Court Medical Centre Sdn Bhd will boost the sovereign wealth fund’s burgeoning healthcare portfolio as it looks to add it to the stable of hospitals under its public-listed vehicle, IHH Healthcare Bhd.

Though the deal will provide IHH with first option to purchase the Petroliam Nasional Bhd or Petronas-owned hospital from another Khazanah subsidiary, it remains to be seen whether IHH will do so under the current circumstances.

An industry analyst tells FocusM that Khazanah’s primary concern in the short-term is to turn around Prince Court before IHH would consider exercising that option.

“It has been losing money since its inception and it would be sensible to steer it to good financial health first before integrating it into IHH’s portfolio. IHH certainly has the expertise and resources to turn around Prince Court. “How long will it take? That remains to be seen,” says the analyst.