Malaysia's sovereign wealth fund Khazanah Nasional said Thursday that it is divesting 16 percent of its IHH Healthcare to Japan's Mitsui for 8.42 billion ringgit (about 2.01 billion U.S. dollars), marking its start of restructuring portfolio.
The wealth fund said in a statement that it had entered into an agreement with Mitsui & Co., Ltd. (Mitsui), to divest 1.4 billion shares in IHH at 6 ringgit per share.
Khazanah Nasional's shareholding in IHH will decrease to 26.05 percent following the divestment.
"This transaction forms an important part of the restructuring of Khazanah's portfolio, and the proceeds raised will be utilized for new investments and capital requirements," it said.
IHH Healthcare is a leading international provider of premium integrated healthcare services operating in the home markets of Malaysia, Singapore, Turkey and India. The company is one of the largest healthcare groups in the world by market capitalization.
The fund said it will continue to be a significant shareholder with representation on the board of IHH, and will provide stability to the shareholder base of IHH for the foreseeable future.
"The divestment is part of Khazanah's strategy to grow the businesses that we are invested in and to find the appropriate times and value to create liquidity for our future capital and investment needs," said Khazanah Nasional managing director Shahril Ridza Ridzuan.
The fund anticipates the transaction to be completed by the first quarter next year.
The wealth fund said in a statement that it had entered into an agreement with Mitsui & Co., Ltd. (Mitsui), to divest 1.4 billion shares in IHH at 6 ringgit per share.
Khazanah Nasional's shareholding in IHH will decrease to 26.05 percent following the divestment.
"This transaction forms an important part of the restructuring of Khazanah's portfolio, and the proceeds raised will be utilized for new investments and capital requirements," it said.
IHH Healthcare is a leading international provider of premium integrated healthcare services operating in the home markets of Malaysia, Singapore, Turkey and India. The company is one of the largest healthcare groups in the world by market capitalization.
The fund said it will continue to be a significant shareholder with representation on the board of IHH, and will provide stability to the shareholder base of IHH for the foreseeable future.
"The divestment is part of Khazanah's strategy to grow the businesses that we are invested in and to find the appropriate times and value to create liquidity for our future capital and investment needs," said Khazanah Nasional managing director Shahril Ridza Ridzuan.
The fund anticipates the transaction to be completed by the first quarter next year.
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