<article><a href="http://www.dealstreetasia.com/?s=Khazanah+Nasional" target="_blank">Khazanah Nasional Bhd </a>has sold 1.58 per cent stake in hospital operator<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=IHH" target="_blank"> IHH Healthcare Bhd</a>, raising MYR828.7 million ($199.71 million) from off-market trades.</article>

<a href="http://www.dealstreetasia.com/?s=Khazanah+Nasional" target="_blank">Khazanah Nasional Bhd </a>has sold 1.58 per cent stake in hospital operator<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=IHH" target="_blank"> IHH Healthcare Bhd</a>, raising MYR828.7 million ($199.71 million) from off-market trades.
Post transaction, the sovereign wealth fund remains the largest shareholder in IHH, the fourth largest listed company on Bursa Malaysia, with 41.17 per cent equity interest still.
The transaction was done with 130.3 million IHH shares sold at MYR6.36 apiece on Tuesday, at a 1.5 per cent discount to the closing share price of MYR6.46.
<a style="color: #000080;" href="http://www.thestar.com.my/business/business-news/2016/06/02/khazanah-realises-value-in-ihh/" target="_blank">StarBiz reported</a> that the move will add liquidity to IHH, with about 80 per cent of the shares taken up by local funds and foreigners.
<a style="color: #000080;" href="http://www.financeasia.com/News/426434,khazanah-cuts-ihh-stake-with-201m-block.aspx" target="_blank">FinanceAsia reported</a> that the sale was done at a good price, as IHH  shares are trading near record levels. At MYR6.36 per share, Khazanah is making about 220 per cent return compared with the MYR2.80 IPO price in 2012.
The fund&#8217;s equity interest in the healthcare group could continue to dwindle when holders of the S$500 million Islamic bond begin converting to shares this October. FinanceAsia reported that an exchange of bonds for shares is highly likely as IHH&#8217;s share price has been trading notably above the MYR4.9023 strike price.
Khazanah has been trimming its stake in IHH since before the healthcare group went for its dual listing in Malaysia and Singapore, when it first held 62.1 per cent stake. The fund diluted its equity interest to 45.3 per cent post-listing, and held 42.75 per cent before the transaction on Tuesday.
The fund was recently reported to be paring down stakes in large corporations in which it is the largest shareholder, like IHH, Axiata Group Bhd and Tenaga Nasional Bhd. Divestments of up to 2 per cent stakes in these companies could raise Khazanah up to MYR3.6 billion, according to <a style="color: #000080;" href="http://www.dealstreetasia.com/stories/malaysia-khazanah-mull-paring-stakes-worth-897m-three-listed-firms-40211/" target="_blank">Bloomberg’s story</a>.
The move to divest is part of the government’s directive to boost liquidity in the local stock market.
Also read:
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/malaysia-ihh-healthcare-open-to-shore-up-stake-in-apollo-hospitals-if-opportunity-is-right-24166/" target="_blank">Malaysia: IHH Healthcare open to shore up stake in Apollo Hospitals, if opportunity is right</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/ihh-acquires-73-4-in-indias-global-hospitals-for-194m-11159/" target="_blank">IHH acquires 73.4% in India’s Global Hospitals for $194m</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/advent-intls-controlling-stake-in-indias-care-hospital-on-block-for-300m-7863/" target="_blank">Malaysia’s IHH Healthcare, Carlyle Group, Baring Private Equity Asia among suitors for Care Hospitals</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/38447-38447/" target="_blank">Singapore: IHH Healthcare expands to Bulgaria, SSBs attracts S$810m, IOC secures $400m credit facility</a>
<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/sg-dealbook-11-27326/" target="_blank">SG Dealbook: IHH Healthcare expands China footprint; Banks line up for HDB bonds issue</a>

Khazanah sells 1.6% in IHH Healthcare for $199.7m

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Khazanah sells 1.6% in IHH Healthcare for $199.7m

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief