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KPJ sets up JV to build specialist hospital in Perlis

The Edge Financial Daily, Tuesday, 12 July 2011


KUALA LUMPUR: KPJ Healthcare Bhd proposed yesterday to form a joint venture to build a hospital in Perlis with Yayasan Islam Perlis (YIP). Last month, the healthcare outfit proposed to build a specialist hospital in Pahang.

KPJ’s wholly-owned Kumpulan Perubatan Johor Sdn Bhd will pay RM9.75 million to take up 60% of the JV company, Perlis Specialist Hospital Sdn Bhd. The remaining 40% will be held by YIP, which will provide 1.75ha of leasehold land in Kangar, Perlis, for the construction of the hospital.

KPJ will be appointed manager of the JV company, KPJ said in a statement to Bursa Malaysia yesterday. "The proposed joint venture is in line with KPJ and its subsidiaries’ objective to increase its network of hospitals to locations where private healthcare is in demand," it said, adding that it does not expect to pump more money into the yenture at present.

The JV company will source funds from bank borrowings or from KPJ and YIP in proportion to their shareholdings.

Bernama reported that KPJ had allocated RM32.8 million to build the first phase of its hospital in Pengkalan Asam, Kangar which is expected to complete by December 2013 and begin receiving patients by January 2014.

Including phase two of the development, the Perlis Specialist hospital is expected to cost RM47 million, Bernama quoted Datin Paduka Siti Sa’diah Sheik Bakir, KPJ managing director, as saying. Phase one will have 60 hospital beds while phase two will add another 30 beds.

State-owned Johor Corp owns 41.9% of KPJ, which has a network of 20 hospitals in Malaysia and two in Indonesia, with more than 2,600 licensed beds. KPJ fell one sen to close at RM4.55 yesterday.