KUALA LUMPUR – An affiliate of Singapore’s sovereign wealth fund, GIC Private Ltd, is investing RM750 million in Sunway Bhd’s healthcare unit, after speculation surfaced recently.
Sunway’s healthcare arm is also eyeing an initial public offering within six to eight years, it said today.
Sunway Healthcare Holdings Sdn Bhd will receive the injection from Greenwood Capital Pte Ltd.
Bernama reported that the proposed investment entails a share subscription agreement to acquire 100 million ordinary shares in Sunway Healthcare, 10 million irredeemable convertible preference shares (ICPS) in Sunway Healthcare, and one cumulative irredeemable dividend convertible preference share (DCPS) in Sunway Healthcare by Greenwood for a total subscription consideration of RM750 million in cash.
The share acquisition collectively gives the Singapore company a 16% equity interest in Sunway Healthcare.
“Pursuant to the proposed investment, Greenwood will be entitled to receive dividends equivalent to a rate of 3.0% per annum until an earlier date of completion of a proposed initial public offering (IPO) of Sunway Healthcare, or Greenwood ceasing to be a shareholder of Sunway Healthcare.
“A commitment to undertake the proposed IPO has been given by Sunway, Sunway City, Sunway Healthcare and Greenwood,” the group said in a filing with Bursa Malaysia today.
In a virtual question-and-answer session today, Sunway Group founder and patriarch Tan Sri Jeffrey Cheah Fook Ling said the IPO is a six- to eight-year programme for the company, Bernama reported.
Cheah controls about 63% equity interest in Sunway Group. – The Vibes, June 23, 2021
