KUALA LUMPUR (Oct 5): KPJ Healthcare Bhd, responding to a news report that said the group was set to be privatised, clarified that it has not received any proposal on the matter so far.
"We wish to clarify that the company has not received any notification for [the] privatisation proposal from any party to-date.
"KPJ will make the necessary announcement as required by the Main Market Listing Requirements if and when such a proposal is received," the group said in a bourse filing Tuesday.
Shares of KPJ shot up to a two-year high of RM1.21 last Friday (Oct 1) amid the privatisation talk.
Over the weekend, The Edge Malaysia weekly reported that Johor Corp (JCorp) and US private equity TPG Capital were planning to privatise the group.
It said the two entities were expected to submit to the KPJ board a proposal to take the group private via a special-purpose vehicle that would make an offer for KPJ shares at RM1.20 to RM1.25 a share.
JCorp, which is controlled by the Johor government, holds almost 46% of KPJ, followed by the Employees Provident Fund at 13% and Kumpulan Wang Persaraan (Diperbadankan) with a 5.4% stake. JCorp and TPG were said to be in talks with banks to finance the potential deal.
KPJ mainly operates in Malaysia with 28 hospitals and has a small presence in Indonesia and Bangladesh. Although the healthcare group has a smaller market capitalisation than peers such as IHH Healthcare Bhd, KPJ is sought after for its network in the country with other private equity funds said to be eyeing it for this reason.
On Tuesday, KPJ's shares rose 3.48% or four sen to RM1.19, giving a market capitalisation of RM5.31 billion.