STELLA HOLDINGS' UNIT ENTERS JVSA TO PROVIDE HEALTHCARE SERVICES

KUALA LUMPUR, Oct 9 -- Stella Holdings Bhd’s wholly-owned subsidiary, Stella Healthcare Holdings Sdn Bhd has entered into a joint-venture cum shareholders agreement (JVSA) with Kasih Holdings Sdn Bhd and Stella Kasih Healthcare Sdn Bhd (SKH) to provide healthcare services.

Under the JVSA, Stela Healthcare and Kasih Holdings would be the shareholders of SKH, the joint-venture company which has been incorporated with the intention to provide healthcare services and to operate and manage a hospital in Putrajaya, which is nearing its completion.

“In order to complete the construction of the hospital, Kasih Holdings has sought Stella Healthcare as potential investor to jointly assist in funding the construction of the hospital,” Stella Holdings said in a filing with Bursa Malaysia today.

It said the proposed joint venture would be funded through internal funds and/or bank borrowings and the exact mix of funding would be decided later after taking into consideration the gearing level of the company, interest costs, as well as internal cash requirements for business operations.  

Stella Holdings said the proposed joint venture is in line with its objective to expand its revenue and earnings stream, thus, enhancing shareholders’ value.

It said the healthcare industry offered good business potential, as well as serving the needs of consumers for improved and affordable healthcare.

 “As the demand for healthcare is expected to grow, thus the hospital is expected to provide a recurring income stream to Stella Group once it begins operation,” it added.

-- BERNAMA