The healthcare group, Asia’s largest hospital operator by stock market value, said in a stock market filing that the acquisition done via a Singapore-based indirect subsidiary of IHH, will not have any material effect on the group’s earnings and net assets for the current financial year ending December 31, 2015.
The deal marks an expansion of Malaysian sovereign wealth fund Khazanah Nasional Bhd‘s interest in Indian healthcare sector. Khazanah, which is a minority shareholder in top Indian hospital chain Apollo Hospitals Enterprise Ltd, is also the single largest shareholder of IHH.
Continental Hospitals has a 750-bed super specialty facility in Hyderabad, and was founded by doctor turned entrepreneur Guru N Reddy who is chairman and managing director. The company opened its first and only hospital in March 2013.
IHH’s foray into the Indian healthcare sector was a rare move by an international hospital firm.
The fragmented hospitals business in the South Asian country is dominated by domestic firms and barring a few international healthcare chains like Aster DM Healthcare (whose Indian born founder built the business in the Middle East before expanding into India), Max Healthcare (co-promoted by South Africa’s Life Healthcare) and some in the single specialty segment, according to VC Circle.
IHH also has two existing JVs with Apollo running a hospital Apollo Gleneagles Hospital in Kolkata and Apollo Gleneagles PET-CT Centre in Hyderabad.
The company which has operations in China, Malaysia, Singapore, Australia and now India, recently intended to seal a deal to acquire Singapore-based Radlink-Asia, a unit of India’s Fortis Healthcare Ltd for $109 million.
This deal fell through after Singapore’s Competition Commission blocked the proposed deal, citing anti-competition in the country. IHH already has a large presence in the Southeast Asian nation through Parkway.