This article first appeared in The Edge Financial Daily on December 4, 2018 - December 10, 2018

KUALA LUMPUR: Khazanah Nasional Bhd’s move to sell a 16% stake in IHH Healthcare Bhd to Mitsui & Co Ltd is “the best way” for the sovereign wealth fund to pare down its shareholding in the healthcare group, said Economic Affairs Minister Datuk Seri Mohamed Azmin Ali.

Speaking to reporters at the Parliament building, Mohamed Azmin brushed off former prime minister Datuk Seri Najib Razak’s claim that the sale could be followed by the sale of more reputable Malaysian companies to non-Malaysian owners. “Mitsui is already our partner in the consortium,” he said, referring to Khazanah’s partnership with Mitsui, among the latest being a joint venture to expand the kidney care services of New York-listed DaVita Healthcare Partners Inc in the region. “Now we are selling to our own partner, which is buying the stake at a very high premium,” said Mohamed Azmin.

Pointing out that Khazanah will go back to its core mandate, Mohamed Azmin said: “We have been there [in IHH] for quite some time, and now they are being paid a very high premium and I think this is the best way to exit and focus on other strategic industries for the country.” Asked if more Khazanah assets will be divested soon, Mohamed Azmin said: “As of now, no more.”