KPJ acquires 65% stake in Sabah hospital

theedgedaily:KPJ Healthcare Bhd recently acquired a 65% stake in Kota Kinabalu-based Damai Specialist Centre (DSC) for RM10.47 million.
The hospital group said the acquisition of DSC will benefit the hospital significantly as KPJ will provide hospital management expertise while leaving the medical personnel to focus on their clinical activities.
"Expansion plans have also been put in place for a new building and purchase of new equipment, as well as renovations bringing total beds to 60 and 14 new clinics," it said on Nov 30.
The new building is expected to be completed by end of 2005. In addition, the new medical equipment and facilities are expected to boost hospital revenue and complement the services of other KPJ hospitals throughout Malaysia.
KPJ chairman Tan Sri Muhammad Ali Hashim said the decision to acquire DSC would provide a stepping stone for KPJ to enter new markets.
"Over the last few years, we have been very focused in our strategy of growing the KPJ Healthcare network across the region in the area of hospital management,” he said.
DSC provided the appropriate avenue for KPJ to further grow its healthcare tourism sector as DSC caters to foreign patients from Brunei, the Philippines, Indonesia and Hong Kong due to the reputation of its medical consultants.
As part of the acquisition, KPJ will also subscribe to RM6 million of DSC’s 6% cumulative convertible loan stock and these will be used to fund the upgrading work of the hospital by improving facilities and finance capital expenditure.
"The loan stock will be convertible into shares at any time at par value," it said.
KPJ is now the largest private healthcare group in the country with a network of 17 hospitals in Malaysia, Indonesia and Bangladesh.