KPJ Healthcare Berhad

A leader in Malaysia's challenging healthcare services industry

Event Detail:

KPJ EGM 2009

KPJ Unlocks Further Value With 3rd REIT Injection


KPJ Healthcare Berhad (KPJ), Malaysia’s largest provider of private healthcare services, announced that it was injecting more hospitals as well as one additional property under its wing into the Al-‘AQAR KPJ REIT, during their Extraordinary General Meeting (EGM), today.

The injection will involve 8 KPJ properties, namely the Seremban Specialist Hospital building, Taiping Medical Centre building, Kota Kinabalu Specialist Hospital building, Bukit Mertajam Specialist Hospital building, KPJ Penang Specialist Hospital building, Tawakal Hospital’s existing building, KPJ Tawakal Specialist Hospital’s building, as well as the nursing college under KPJ International College Of Nursing And Health Sciences (KPJIC).

The exercise will involve a total purchase consideration of RM293 million to be satisfied by Al-‘Aqar partly by a cash consideration of RM176 million and partly by the issuance of 123 million new units in Al-‘Aqar KPJ REIT at an issue price of RM0.95 per unit.

Although there are concerns regarding the global economic scenario, KPJ is confident that the healthcare industry is resilient and will stand the test of these challenging times.  Al-‘Aqar KPJ REIT will allow KPJ to successfully unlock the value of the assets to become asset light and reinvest the funds into the Group as well as to reduce the borrowings. “The REITS enables KPJ to have greater flexibility for future expansion with available funds for potential acquisitions, mergers and reinvestments into both new and existing hospitals.” said Tan Sri Dato’ Muhammad Ali Hashim, Chairman of KPJ.

KPJ has made two prior injections into Al-‘Aqar, comprising the hospital buildings.  The first injection of KPJ hospitals into the Al-'Aqar KPJ REIT in August 2006 enabled the KPJ Group to unlock total assets value worth RM461 million, involving KPJ Ampang Puteri Specialist Hospital Building, KPJ Damansara Specialist Hospital Buildings, KPJ Johor Specialist Hospital Building, KPJ Ipoh Specialist Hospital Building, KPJ Selangor Specialist Hospital Building and  Puteri Specialist Hospital Building. Following this the KPJ Group continued to unlock RM170 million in the 2nd exercise, encompassing 5 properties from KPJ namely, Kedah Medical Centre Building, Perdana Specialist Hospital Building, Kuantan Specialist Hospital Building, Sentosa KL Specialist Hospital Building and KPJ Kajang Specialist Hospital Building. KPJ will continue to inject more properties in the future, which is consistent to its long term growth strategy.