SHARES OF IHH HEALTHCARE RISE ON FORTIS' STAKE ACQUISITION COMPLETION
KUALA LUMPUR, Jan 17 (Bernama) – Shares of IHH Healthcare Bhd rose on Bursa Malaysia this morning, hours after the Group announced its 31.1 per cent-owned subsidiary, Fortis Healthcare Ltd, had completed the acquisition of Indian clinics and hospitals RHT Health Trust’s assets for INR46.66 billion (RM2.7 billion).
The stock rose eight sen to RM5.78 as at 9.04 am with 10,500 shares changing hands.
With the acquisition, RHT Health's subsidiaries, namely International Hospital Ltd, Fortis Health Management Ltd, Fortis Hospotel Ltd, Escorts Hearth and Super Speciality Hospital Ltd and Hospitalia Eastern Pvt Ltd had become wholly-owned units of Fortis.
In a note, Maybank IB Research said the purchase valuation was fair and would help Fortis in reducing losses.
“It would lift IHH’s earnings slightly, but increase net gearing significantly, after the open offer for Fortis is completed,” it added.
It said the net gearing would rise to around 45 per cent.
The research house has maintained its earnings forecasts on IHH Healthcare with an unchanged “Buy” call and target price of RM6.45.
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