17 Rabiulawal 1433
TEMERLOH, Feb 9, 2012- Palm oil is Malaysia's biggest commodity exports, registering RM80 billion last year.
In second place was rubber with RM20 billion, Deputy Plantation Industries and Commodities Minister Datuk Hamzah Zainudin told reporters at Teknologi Mara (UiTM) Jengka campus near here today.
He said the country's total commodity exports were RM130 billion last year.
Other commodities exported included cocoa and kenaf, he added.
"We expect the value to continue to increase this year on the back of rising demand," he said.
He also said efforts to promote Malaysian commodity products would continue in both new and traditional markets such as Japan, China, United Sattes, West Asia and Europe.
Meanwhile, Hamzah said his ministry was encouraging cocoa cultivation due to high demand for the commodity in the world market.
"The ministry organised the People's Cocoa Programme last year to encourage people to use idle land near their houses for cocoa cultivation.
"The ministry will provide quality cocoa seeds hoping that cocoa output will increase in the next few years," he said.
There was big potential in the cocoa industry and it could bring lucrative returns, he said.
"In the 1990s, Malaysia was among the world's major cocoa producers. Cocoa cultivation area in the 1990s was 420,300ha compared to only about 20,000ha now," he said.
Source- BERNAMA
Thursday, February 9, 2012
Monday, February 6, 2012
Malaysia Invited To Diversify Its Investment In Turkmenistan
14 Rabiulawal 1433
By Joshua Foong (Bernama)
LONDON, Feb 7 , 2012- Malaysian firms should capitalise on the vast business opportunities in Turkmenistan as the Central Asian nation seeks to intensify contacts in a broad spectrum of economic partnership.
This invitation was expressed by the President of Turkmenistan, Gurbanguly Berdimuhamedov, to Foreign Minister Datuk Seri Anifah Aman at a meeting on Feb 1.
Anifah, who was met by Malaysian press in London yesterday, said among key areas that was raised at the meeting was the increase of Malaysian involvement in industrial, transport and communications as well as high technology and tourism sectors, especially in the context of Turkmenistan's ongoing infrastructural projects and large-scale reform initiatives.
"President Berdimuhammadov, who together with Prime Minister Datuk Seri Najib Tun Razak, took the relationship of both countries to a higher level in the past year, has indicated to me that his government will be very friendly to any possible Malaysian involvements and investments in the Turkmen economy," he said.
The Turkmen market, which is rapidly developing, and the favourable investment climate in the country, provide a conducive platform for the establishment of long-term cooperation with Malaysian business circles.
"My trip to Turkmenistan was also to assist Petronas in trying to secure other further business opportunities and to request for speedy government approval to facilitate of some of the work that they plan to do there," he added.
Petronas Carigali, the exploration and production arm of Petronas, began operating in the Turkmen sector of Caspian Sea since 1996.
Ten years later, in May 2006, the national oil corporation began to diversify in more downstream activities, such as industrial production and oil export.
Moving forward, on top of wider economic links, Berdimuhammadov had also expressed hopes that both Malaysia and Turkmenistan will be able to enhance bilateral humanitarian contacts, including in areas of education, professional training, science and culture.
Anifah also said that his ministry has already identified a candidate to be appointed as Malaysia's first ambassador to Turkmenistan, with a Malaysian Embassy to be opened in the Turkmen capital of Ashgabat in the coming months.
Turkmenistan is also in the process of establishing an embassy in Kuala Lumpur.
Source- BERNAMA
By Joshua Foong (Bernama)
LONDON, Feb 7 , 2012- Malaysian firms should capitalise on the vast business opportunities in Turkmenistan as the Central Asian nation seeks to intensify contacts in a broad spectrum of economic partnership.
This invitation was expressed by the President of Turkmenistan, Gurbanguly Berdimuhamedov, to Foreign Minister Datuk Seri Anifah Aman at a meeting on Feb 1.
Anifah, who was met by Malaysian press in London yesterday, said among key areas that was raised at the meeting was the increase of Malaysian involvement in industrial, transport and communications as well as high technology and tourism sectors, especially in the context of Turkmenistan's ongoing infrastructural projects and large-scale reform initiatives.
"President Berdimuhammadov, who together with Prime Minister Datuk Seri Najib Tun Razak, took the relationship of both countries to a higher level in the past year, has indicated to me that his government will be very friendly to any possible Malaysian involvements and investments in the Turkmen economy," he said.
The Turkmen market, which is rapidly developing, and the favourable investment climate in the country, provide a conducive platform for the establishment of long-term cooperation with Malaysian business circles.
"My trip to Turkmenistan was also to assist Petronas in trying to secure other further business opportunities and to request for speedy government approval to facilitate of some of the work that they plan to do there," he added.
Petronas Carigali, the exploration and production arm of Petronas, began operating in the Turkmen sector of Caspian Sea since 1996.
Ten years later, in May 2006, the national oil corporation began to diversify in more downstream activities, such as industrial production and oil export.
Moving forward, on top of wider economic links, Berdimuhammadov had also expressed hopes that both Malaysia and Turkmenistan will be able to enhance bilateral humanitarian contacts, including in areas of education, professional training, science and culture.
Anifah also said that his ministry has already identified a candidate to be appointed as Malaysia's first ambassador to Turkmenistan, with a Malaysian Embassy to be opened in the Turkmen capital of Ashgabat in the coming months.
Turkmenistan is also in the process of establishing an embassy in Kuala Lumpur.
Source- BERNAMA
Saturday, February 4, 2012
ETP, GTP Boost Malaysia Financial Competitiveness
12 Rabiulawal 1433
IPOH, Feb 4 , 2012 The implementation of the Economic Transformation Plan and Government Transformation Plan has boosted the competitiveness of the national finances.
Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said, this was based on the Global Competitiveness Report 2011/2012 which was tabled at the six-day World Economic Forum in Davos-Klosters, Switzerland, beginning Jan 24.
"The report was completed in September last year and tabled during the meeting. Our country was included in terms of competitiveness because our financial level rose much higher than that of South Korea.
"We are currently placed at No. 21, while South Korea is No. 24. Prior to this, our country was No. 26," he told reporters . He said the evaluation covered numerous angles, including the micro economic environment which is the basis for an increase in domestic investments and foreign direct investments.
Apart from that, he said, the evaluation was also based on the infrastructural development, health and education.
Source- BERNAMA
IPOH, Feb 4 , 2012 The implementation of the Economic Transformation Plan and Government Transformation Plan has boosted the competitiveness of the national finances.
Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said, this was based on the Global Competitiveness Report 2011/2012 which was tabled at the six-day World Economic Forum in Davos-Klosters, Switzerland, beginning Jan 24.
"The report was completed in September last year and tabled during the meeting. Our country was included in terms of competitiveness because our financial level rose much higher than that of South Korea.
"We are currently placed at No. 21, while South Korea is No. 24. Prior to this, our country was No. 26," he told reporters . He said the evaluation covered numerous angles, including the micro economic environment which is the basis for an increase in domestic investments and foreign direct investments.
Apart from that, he said, the evaluation was also based on the infrastructural development, health and education.
Source- BERNAMA
Sugar Subsidy Up Because Of Higher World Prices
12 Rabiulawal 1433
KUALA LUMPUR, Feb 3, 2012- The sugar subsidy for this year to 2014 has increased because the higher world prices compared with the price signed under the long-term contract (LTC) from 2009 to 2011.
Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob, said sugar price has increased by US$0.26 per lb compared with US$0.175 per lb in 2009-2011.
"As a result, the subsidy borne by the government from 2009-2011 is still based on US$0.175 per lb under the LTC," he said after launching the Menu Rakyat 1Malaysia at Bank Rakyat's cafetaria here.
He said for the next three years, the subsidy would increase based on the new LTC price of US$0.26 which the government signed in January.
Ismail Sabri refuted accusations by certain parties that the government has increased the sugar subsidy despite the fall in world raw sugar prices.
He said the price was still high at US$0.175 a lb.
The higher subsidy this year was not related to the fall in raw sugar prices eight months ago, he said.
Ismail Sabri said Malaysia imported almost 100 per cent of its sugar from Australia, Brazil and Thailand via Felda's subsidiary, MSM Malaysia Holdings Bhd, and Tradewinds.
Source- BERNAMA
KUALA LUMPUR, Feb 3, 2012- The sugar subsidy for this year to 2014 has increased because the higher world prices compared with the price signed under the long-term contract (LTC) from 2009 to 2011.
Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob, said sugar price has increased by US$0.26 per lb compared with US$0.175 per lb in 2009-2011.
"As a result, the subsidy borne by the government from 2009-2011 is still based on US$0.175 per lb under the LTC," he said after launching the Menu Rakyat 1Malaysia at Bank Rakyat's cafetaria here.
He said for the next three years, the subsidy would increase based on the new LTC price of US$0.26 which the government signed in January.
Ismail Sabri refuted accusations by certain parties that the government has increased the sugar subsidy despite the fall in world raw sugar prices.
He said the price was still high at US$0.175 a lb.
The higher subsidy this year was not related to the fall in raw sugar prices eight months ago, he said.
Ismail Sabri said Malaysia imported almost 100 per cent of its sugar from Australia, Brazil and Thailand via Felda's subsidiary, MSM Malaysia Holdings Bhd, and Tradewinds.
Source- BERNAMA
Thursday, February 2, 2012
Selling Lotus a Viable Option: Tun Mahathir
10 Rabiulawal 1433
Tun Dr Mahathir Mohamad, Malaysia’s former prime minister, comments on Proton Holdings Bhd after billionaire Syed Mokhtar Al-Bukhary’s DRB-Hicom Holdings Bhd agreed to buy a controlling stake from the government.
Mahathir, who helped found Proton and remains an advisor, also comments on whether DRB should sell Proton’s U.K. sports- car arm Group Lotus International Ltd. The former premier made these comments in an interview in Kuala Lumpur yesterday.
On selling Lotus:
“It is a viable option and I think the new owners of Proton might consider that. But, Lotus is not just a sports-car company. It is an engineering and technology company. It’s selling engineering skills to China and helping people going into the industry.”
Whether Proton’s new controlling shareholder DRB-Hicom can make a difference:
“The man behind DRB-Hicom is a successful entrepreneur. He owns ports and businesses and took over DRB-Hicom from previous owner and has turned it around.
“DRB-Hicom was a great failure before. It lost a lot of money before he took it over and has turned it around. It’s a profitable company and many foreign automotive companies go to this company and want them to be partners. They assemble Mercedes-Benz cars, Volkswagens and Suzukis. They are financially strong. I am confident.
“Of course, they have a lot of borrowings. Nobody is rich with their own money. They are rich with money that they borrow.”
On whether Proton still needs a global strategic partner:
“If you go to Italy, small companies can design and build car, so you don’t need big companies to be with you. You can go direct to the very companies which the big companies use.
“We see big companies are more keen on swallowing us up. We feel we want to be independent. Therefore, we go to the small companies and we can now build and design cars of modern design by working through these small companies.”
On what’s needed to turnaround Proton’s fortunes:
“I think a good management. There is nothing wrong with Proton, but bad management has caused it to come down.
“There were times Proton was doing so well. It made so much money it managed to build huge facilities, including a big manufacturing center costing 1 billion ringgit. These were internally generated funds and not by borrowing from the banks or asking the government for money. It’s not usual for any car companies to be able to generate funds internally for expansion. So it’s not a failure.
“Today, it seems to be in a bad way. Of course, there were things done which should not have been done. For example, they allowed for the import of foreign cars, but these people under- declare and do all kinds of funny things. As a result, these foreign cars push out Proton from the market. So, we understand the problem. We have a chance to recover.”
Proton’s challenges:
“One time, we had a reserve of RM4 billion, which would able to finance the growth of the future. Unfortunately, due to things done by the wrong management we have lost the cash.
“In the automotive business you need a lot of money. Each model, just for the platform requires half a billion ringgit. We need that money. I hope the new investors will provide the money.”
On whether Malaysia really needs a national car:
“By itself, a national car is not a need. We could buy cheaper cars by importing them. An automotive industry generates a lot of engineering skills and it can give us a lot of the other businesses.
“Now we can manufacture components and produce a lot of other things. People who look at Proton may think of it as a failure, but we think it has helped Malaysia take many steps in the field of engineering.”
Source- Bloomberg & Business Times
Tun Dr Mahathir Mohamad, Malaysia’s former prime minister, comments on Proton Holdings Bhd after billionaire Syed Mokhtar Al-Bukhary’s DRB-Hicom Holdings Bhd agreed to buy a controlling stake from the government.
Mahathir, who helped found Proton and remains an advisor, also comments on whether DRB should sell Proton’s U.K. sports- car arm Group Lotus International Ltd. The former premier made these comments in an interview in Kuala Lumpur yesterday.
On selling Lotus:
“It is a viable option and I think the new owners of Proton might consider that. But, Lotus is not just a sports-car company. It is an engineering and technology company. It’s selling engineering skills to China and helping people going into the industry.”
Whether Proton’s new controlling shareholder DRB-Hicom can make a difference:
“The man behind DRB-Hicom is a successful entrepreneur. He owns ports and businesses and took over DRB-Hicom from previous owner and has turned it around.
“DRB-Hicom was a great failure before. It lost a lot of money before he took it over and has turned it around. It’s a profitable company and many foreign automotive companies go to this company and want them to be partners. They assemble Mercedes-Benz cars, Volkswagens and Suzukis. They are financially strong. I am confident.
“Of course, they have a lot of borrowings. Nobody is rich with their own money. They are rich with money that they borrow.”
On whether Proton still needs a global strategic partner:
“If you go to Italy, small companies can design and build car, so you don’t need big companies to be with you. You can go direct to the very companies which the big companies use.
“We see big companies are more keen on swallowing us up. We feel we want to be independent. Therefore, we go to the small companies and we can now build and design cars of modern design by working through these small companies.”
On what’s needed to turnaround Proton’s fortunes:
“I think a good management. There is nothing wrong with Proton, but bad management has caused it to come down.
“There were times Proton was doing so well. It made so much money it managed to build huge facilities, including a big manufacturing center costing 1 billion ringgit. These were internally generated funds and not by borrowing from the banks or asking the government for money. It’s not usual for any car companies to be able to generate funds internally for expansion. So it’s not a failure.
“Today, it seems to be in a bad way. Of course, there were things done which should not have been done. For example, they allowed for the import of foreign cars, but these people under- declare and do all kinds of funny things. As a result, these foreign cars push out Proton from the market. So, we understand the problem. We have a chance to recover.”
Proton’s challenges:
“One time, we had a reserve of RM4 billion, which would able to finance the growth of the future. Unfortunately, due to things done by the wrong management we have lost the cash.
“In the automotive business you need a lot of money. Each model, just for the platform requires half a billion ringgit. We need that money. I hope the new investors will provide the money.”
On whether Malaysia really needs a national car:
“By itself, a national car is not a need. We could buy cheaper cars by importing them. An automotive industry generates a lot of engineering skills and it can give us a lot of the other businesses.
“Now we can manufacture components and produce a lot of other things. People who look at Proton may think of it as a failure, but we think it has helped Malaysia take many steps in the field of engineering.”
Source- Bloomberg & Business Times
Wednesday, February 1, 2012
Bank Negara Maintains OPR At 3 Per Cent
8 Rabiulawal 1433
KUALA LUMPUR, Jan 31, 1433 - Bank Negara Malaysia has maintained the Overnight Policy Rate (OPR) at three per cent.
The central bank said in the recent months, global economic and financial conditions had deteriorated following the escalation of the sovereign debt crisis in Europe, the ongoing fiscal consolidation and the significant policy uncertainties.
"The heightened market volatility, impaired financial intermediation and weak labour market conditions continue to weigh down on growth in the advanced economies.
"These conditions pose downside risks to global growth.
"In Asia, while growth continues to be supported by sustained domestic demand, the growth momentum has moderated amid the weaker external environment, it said in a statement after Monetary Policy Committee (MPC) meeting Tuesday.
In the domestic economy, it said, the latest indicators pointed towards continued expansion in the fourth quarter of 2011.
The central bank said growth was driven by sustained domestic consumption and investment activities, while the external sector showed signs of moderation.
"Looking ahead, the economy is expected to continue to expand, underpinned by sustained private sector economic activity and further reinforced by public sector spending," it said.
Meanwhile, Bank Negara said employment conditions were expected to remain stable while the outlook for domestic-oriented sectors will continue to be favourable.
"Overall growth prospects, however, will be affected by the slowdown in external demand, resulting in slower growth in exports and industrial production," it said.
It said domestic headline inflation averaged 3.2 per cent in 2011.
Going into 2012, cost-push inflation will moderate as slowing global economic activity will alleviate the pressure on the prices of key commodities, it said.
"The impact of domestic demand factors on inflation is expected to be contained, in line with stable domestic demand conditions.
"Headline inflation, therefore, is expected to moderate in 2012.
"Nevertheless, risks to inflation could emerge arising from supply disruptions that would result in higher food and commodity prices," it said.
The central bank said in the MPC's assessment, the global environment will become more challenging going forward.
"As Malaysia's economic growth and inflation prospects will be affected by these external developments, the MPC will continue to assess carefully the risks to domestic growth and inflation," it said.
Source- BERNAMA
KUALA LUMPUR, Jan 31, 1433 - Bank Negara Malaysia has maintained the Overnight Policy Rate (OPR) at three per cent.
The central bank said in the recent months, global economic and financial conditions had deteriorated following the escalation of the sovereign debt crisis in Europe, the ongoing fiscal consolidation and the significant policy uncertainties.
"The heightened market volatility, impaired financial intermediation and weak labour market conditions continue to weigh down on growth in the advanced economies.
"These conditions pose downside risks to global growth.
"In Asia, while growth continues to be supported by sustained domestic demand, the growth momentum has moderated amid the weaker external environment, it said in a statement after Monetary Policy Committee (MPC) meeting Tuesday.
In the domestic economy, it said, the latest indicators pointed towards continued expansion in the fourth quarter of 2011.
The central bank said growth was driven by sustained domestic consumption and investment activities, while the external sector showed signs of moderation.
"Looking ahead, the economy is expected to continue to expand, underpinned by sustained private sector economic activity and further reinforced by public sector spending," it said.
Meanwhile, Bank Negara said employment conditions were expected to remain stable while the outlook for domestic-oriented sectors will continue to be favourable.
"Overall growth prospects, however, will be affected by the slowdown in external demand, resulting in slower growth in exports and industrial production," it said.
It said domestic headline inflation averaged 3.2 per cent in 2011.
Going into 2012, cost-push inflation will moderate as slowing global economic activity will alleviate the pressure on the prices of key commodities, it said.
"The impact of domestic demand factors on inflation is expected to be contained, in line with stable domestic demand conditions.
"Headline inflation, therefore, is expected to moderate in 2012.
"Nevertheless, risks to inflation could emerge arising from supply disruptions that would result in higher food and commodity prices," it said.
The central bank said in the MPC's assessment, the global environment will become more challenging going forward.
"As Malaysia's economic growth and inflation prospects will be affected by these external developments, the MPC will continue to assess carefully the risks to domestic growth and inflation," it said.
Source- BERNAMA
Tuesday, January 24, 2012
Khazanah Subsidiary And Turkish Health Provider In Synergistic Partnership
1 Rabiulawal 1433
From Dalila Abu Bakar(Bernama)
ISTANBUL, Jan 25 , 2012- The synergistic partnership between Khazanah Holdings Bhd's healthcare subsidiary, Integrated Holdings Healthcare Sdn Bhd (IHH), and Turkey-based healthcare services provider, Acibadem Saglik Yatirimlari Holding A.S.(ASYH), would see the group emerge among the world's largest healthcare services provider with 12,316 beds and revenue.
"We are currently number two in terms of number of beds and revenue of the hospital within the group around the world. But, if you look at profitability, we'll be number one," said Saglik Hizmetleri ve Ticaret A.S.Acibadem (Acibadem) founder Mehmet Ali Aydinlar at a press conference here Tuesday following IHH's purchase of a 60 per cent equity in ASYH.
He added that the group was also looking at growth in the Central and Eastern Europe, Middle East and Russia.
Meanwhile, Khazanah Nasional managing director Tan Sri Azman Mokhtar said the group was also planning for growth in India, Singapore, Malaysia and China. he added.
"In various measures and in all counts, we are among the top in the world," he added.
Azman also said that Khazanah also planned to list IHH in 2012.
"The company will put out the relevant documents in due course. We'll be consulting our partners," he said.
IHH successfully completed the 60 per cent acquisition of the enlarged share capital in ASYH from Mehmet Ali Aydinlar and family and Abraaj Capital, a leading private equity manager investing in the Middle East, Turkey, Asia and Africa.
Khazanah Nasional, through its special purpose vehicle, Bagan Lalang Ventures Sdn Bhd, also directly acquired a 15 per cent stake in ASYH.
ASYH is the 92 per cent shareholder of listed Acibadem, a leading private healthcare services provider in Turkey.
The Aydinlar family holds the remaining 25 per cent stake in ASYH.
The transaction value of the 92 per cent of Acibadem is about RM5.308 billion for the entire Class A and Class B shares.
The consideration amount for ASYH's 92 per cent stake in Acibadem is calculated by valuing 4,249,973 Class A shares at RM276.31 per share and 87,719,149 Class B shares at RM43.17 per share.
In compliance with the Turkish Capital Markets Board regulations, a mandatory tender offer will be made to approximately eight per cent of Acibadem's minority shareholders.
The acquisition consideration was made by a combination of cash and newly issued IHH shares.
This will result in the Aydinlar family and Abraaj Capital emerging as shareholders of IHH owning about 4.2 per cent and 7.1 per cent, respectively.
Khazanah, via its wholly-owned special purpose vehicle (SPV), Pulau Memutik Ventures retains a 62.1 per cent stake in IHH while Mitsui, via its wholly-owned SPV, MBK Healthcare Partners Ltd, now owns a 26.6 per cent stake.
Mehmet Ali Aydinlar and Omar Lodhi of Abraaj Capital will join the Board of IHH.
The acquisition represents IHH's first direct presence in the private healthcare space in Turkey.
ASYH is also Khazanah's first direct investment in a Turkish firm and represents another major step for the government's investment arm in growing its investments in the healthcare sector.
The addition of Acibadem to IHH's stable is very significant and adds to its impressive existing portfolio of healthcare assets that include Parkway Holdings Ltd, Pantai Holdings Bhd, International Medical University and shareholdings in India's Apollo Hospitals Enterprises Limited.
With the landmark transaction, IHH is uniquely positioned as one of the largest private healthcare providers in the world with a broad footprint of assets in Malaysia, Singapore, Turkey, India and with presence in China, Brunei, Abu Dhabi as well as Central and Eastern Europe.
Source- BERNAMA
From Dalila Abu Bakar(Bernama)
ISTANBUL, Jan 25 , 2012- The synergistic partnership between Khazanah Holdings Bhd's healthcare subsidiary, Integrated Holdings Healthcare Sdn Bhd (IHH), and Turkey-based healthcare services provider, Acibadem Saglik Yatirimlari Holding A.S.(ASYH), would see the group emerge among the world's largest healthcare services provider with 12,316 beds and revenue.
"We are currently number two in terms of number of beds and revenue of the hospital within the group around the world. But, if you look at profitability, we'll be number one," said Saglik Hizmetleri ve Ticaret A.S.Acibadem (Acibadem) founder Mehmet Ali Aydinlar at a press conference here Tuesday following IHH's purchase of a 60 per cent equity in ASYH.
He added that the group was also looking at growth in the Central and Eastern Europe, Middle East and Russia.
Meanwhile, Khazanah Nasional managing director Tan Sri Azman Mokhtar said the group was also planning for growth in India, Singapore, Malaysia and China. he added.
"In various measures and in all counts, we are among the top in the world," he added.
Azman also said that Khazanah also planned to list IHH in 2012.
"The company will put out the relevant documents in due course. We'll be consulting our partners," he said.
IHH successfully completed the 60 per cent acquisition of the enlarged share capital in ASYH from Mehmet Ali Aydinlar and family and Abraaj Capital, a leading private equity manager investing in the Middle East, Turkey, Asia and Africa.
Khazanah Nasional, through its special purpose vehicle, Bagan Lalang Ventures Sdn Bhd, also directly acquired a 15 per cent stake in ASYH.
ASYH is the 92 per cent shareholder of listed Acibadem, a leading private healthcare services provider in Turkey.
The Aydinlar family holds the remaining 25 per cent stake in ASYH.
The transaction value of the 92 per cent of Acibadem is about RM5.308 billion for the entire Class A and Class B shares.
The consideration amount for ASYH's 92 per cent stake in Acibadem is calculated by valuing 4,249,973 Class A shares at RM276.31 per share and 87,719,149 Class B shares at RM43.17 per share.
In compliance with the Turkish Capital Markets Board regulations, a mandatory tender offer will be made to approximately eight per cent of Acibadem's minority shareholders.
The acquisition consideration was made by a combination of cash and newly issued IHH shares.
This will result in the Aydinlar family and Abraaj Capital emerging as shareholders of IHH owning about 4.2 per cent and 7.1 per cent, respectively.
Khazanah, via its wholly-owned special purpose vehicle (SPV), Pulau Memutik Ventures retains a 62.1 per cent stake in IHH while Mitsui, via its wholly-owned SPV, MBK Healthcare Partners Ltd, now owns a 26.6 per cent stake.
Mehmet Ali Aydinlar and Omar Lodhi of Abraaj Capital will join the Board of IHH.
The acquisition represents IHH's first direct presence in the private healthcare space in Turkey.
ASYH is also Khazanah's first direct investment in a Turkish firm and represents another major step for the government's investment arm in growing its investments in the healthcare sector.
The addition of Acibadem to IHH's stable is very significant and adds to its impressive existing portfolio of healthcare assets that include Parkway Holdings Ltd, Pantai Holdings Bhd, International Medical University and shareholdings in India's Apollo Hospitals Enterprises Limited.
With the landmark transaction, IHH is uniquely positioned as one of the largest private healthcare providers in the world with a broad footprint of assets in Malaysia, Singapore, Turkey, India and with presence in China, Brunei, Abu Dhabi as well as Central and Eastern Europe.
Source- BERNAMA
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