KUALA LUMPUR, June 23 — Singapore sovereign wealth fund GIC (Ventures) Pte Ltd affiliate Greenwood Capital Pte Ltd will inject RM750 million investment in Sunway Bhd’s unit Sunway Healthcare Holdings Sdn Bhd via a 16 per cent shares acquisition in Sunway Healthcare.
The proposed investment entails a share subscription agreement to acquire 100 million ordinary shares in Sunway Healthcare, 10 million irredeemable convertible preference shares (ICPS) in Sunway Healthcare, and one cumulative irredeemable dividend convertible preference share (DCPS) in Sunway Healthcare by Greenwood for a total subscription consideration of RM750 million in cash.
The share acquisition collectively gives the Singapore company a 16 per cent equity interest in Sunway Healthcare.
The proceeds received would be used for capital expenditures for the expansion of existing hospitals and for working capital purposes which include, but not limited to, the day-to-day operating and administrative expenses of the proposed Sunway Healthcare group, the group added.
“The proposed investment will allow the Sunway Healthcare to accelerate its intended expansion plans while prudently managing the financial risk profile of both the proposed Sunway Healthcare Group and the Sunway Group.
“In addition, the proposed investment provides external validation of the Proposed Sunway Healthcare Group’s expansion plans by a seasoned healthcare investor,” it said.
It also said the investment was in line with the Sunway group’s strategic direction where the healthcare division of the Sunway Group will undertake a capacity expansion at the flagship Sunway Medical Centre Sunway City, Selangor and Sunway Medical Centre Velocity, Kuala Lumpur and has embarked on an expansion plan to build six more hospitals over the next few years within its integrated developments in Malaysia.
Besides expanding its existing hospitals and building new hospitals, the proposed Sunway Healthcare Group also intends to expand into other healthcare related businesses such as home healthcare, senior living residences, telemedicine centre, traditional and complementary medicine centres, among others.
During a virtual Q&A session today, founder and patriarch of Sunway Group Tan Sri Jeffrey Cheah Fook Ling said the new hospitals are expected to be ready within three to four years.
He also said Sunway Healthcare group will embark on an initial public offering (IPO) within six to eight year (after the completion of the hospitals).
“We want our hospitals to start making money before we list them. So before our IPO exercise, the hospitals that we are going to build will be ready,” he said.
Cheah, who controls about 63 per cent equity interest in Sunway Bhd said the company is happy to receive the investment from GIC since the two parties have gone a long way.
“GIC has been our partner about 20 years ago when we were hit very badly by the Asian Financial Crisis and they came in and stayed with us for about 10 years. Then, when the time was right they cashed out,” he said.
Cheah added that the fund was among bidders that offered higher amounts when the conglomerate planned to raise fund.
He said post the fund injection, Sunway Healthcare’s value is close to RM4.7 billion.
Sunway shares, which was suspended yesterday, will resume trading effective 9 am on Thursday.
Accordingly, trading in the structured warrants relating to Sunway will also resume at the same time. — Bernama