06 May 2021 | News
Divestment is part of IHH’s Refreshed Strategy to review portfolio and capital deployment to prioritise returns
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IHH Healthcare, at Malaysia, has announced that it has completed the sale of its entire 50% equity stake in its Apollo Gleneagles Hospital Ltd, Kolkata, in India, (AGHL) joint venture to Apollo Hospitals Enterprise Limited (Apollo).
This in line with the Group’s continued execution of its Refreshed Strategy, of which one pillar is to review its portfolio and capital deployment to prioritise returns.
Given the Group’s strategic intent of strengthening its existing healthcare operations across India, IHH entered into a share purchase agreement to divest its entire equity stake in AGHL in November 2020.
India is the Group’s fourth home market, together with Malaysia, Singapore and Turkey.
Between Fortis and IHH’s Global Hospitals and Continental Hospitals, IHH is a leading private healthcare operator in India with a network of more than 30 hospitals.
With the AGHL divestment having completed, IHH will explore options on recycling the capital and reviewing the expansion of our footprint in line with our cluster strategy for capital efficiency and growth in the Indian sub-continent.
“Our divestment of the Apollo Gleneagles Hospital Kolkata joint venture is aligned with our Refreshed Strategy, which includes a review of our portfolio and capital deployment to optimise returns for shareholders. With the monetisation of this non-core asset, we will focus on strengthening our existing healthcare operations across India”, said Dr Kelvin Loh Managing Director and CEO, IHH Healthcare.