Sunway stated these will collectively give Greenwood a 16% fairness curiosity in Sunway Healthcare on a totally transformed foundation in alternate for a RM750mil funding, implying an fairness worth of RM4.68bil.
“As Sunway Healthcare is anticipated to generate secure cashflows and shall be incurring capital expenditures in a staggered method, the corporate has agreed that the subscription quantity shall be paid over 5 tranches, ” it stated.
Sunway stated the subscription quantity shall be used for capital expenditures to broaden present hospitals, particularly, Sunway Medical Centre Sunway Metropolis, Selangor and Sunway Medical Centre Velocity, Kuala Lumpur.
It could even be used to develop new medical services, particularly, Sunway Medical Centre Seberang Jaya, Penang, Sunway Medical Centre Damansara, Selangor, Sunway Medical Centre Ipoh, Perak, Sunway Medical Centre Kota Bharu, Kelantan, Sunway Medical Centre Iskandar, Johor and Sunway Rehabilitation Hospital Paya Terubong, Penang.
The funds would even be used for working capital functions which embody, however not restricted to, the day-to-day working and administrative bills of the proposed Sunway Healthcare Group.
On the rationale, Sunway stated Greenwood’s funding will permit the proposed Sunway Healthcare Group to speed up its supposed enlargement plans whereas prudently managing the monetary danger profile of each the proposed Sunway Healthcare Group and the Sunway Group.
As well as, the proposed funding supplies exterior validation of Sunway Healthcare Group’s enlargement plans by a seasoned healthcare investor.
“The proposed Funding is according to the Sunway Group’s strategic path the place the healthcare division of the Sunway Group will undertake a capability enlargement on the flagship Sunway Medical Centre Sunway Metropolis, Selangor and Sunway Medical Centre Velocity, Kuala Lumpur and has launched into an enlargement plan to construct six extra hospitals over the subsequent few years inside its built-in developments in Malaysia, ” it stated.
Sunway stated the proposed Sunway Healthcare Group additionally intends to broaden into different healthcare associated companies resembling house healthcare, senior dwelling residences, telemedicine centre, conventional and complementary medication centres, amongst others.
It added the funds can be used to finance the capital expenditures and dealing capital necessities whereas decreasing reliance on debt financing.
“The proposed funding can also be a possibility for the Sunway Group to herald Greenwood, an affiliate of GIC Non-public Restricted, Singapore’s sovereign wealth fund and a worldwide long-term investor.
“As a enterprise accomplice, Greenwood would work along with Sunway so as to add worth to the Proposed Sunway Healthcare Group’s operations and assist strengthen Sunway’s place in Malaysia’s personal healthcare section, ” it stated.