'No definitive decisions' made on China investments: IHH Healthcare

MALAYSIAN hospital group IHH Healthcare Q0F said it has made "no definitive decisions" on its investments in China, while acknowledging that "discussions on the strategic directions" have been ongoing.

The group made these comments in a filing to the Singapore Exchange on Wednesday (Nov 24), in response to a Bloomberg report on Monday (Nov 22) which said the group is considering selling its China unit, Parkway China, in a deal that could fetch as much as US$1 billion.

"IHH wishes to clarify that it constantly reviews and assesses the strategic direction of IHH Group's investments. In relation to IHH Group's investments in China, there have been discussions on the strategic directions but no definitive decisions have been made as at the date of this announcement," the group said.

Parkway China opened its first medical centre in Shanghai in 2006. A year later, it acquired World Link Group and became one of the largest foreign-owned medical networks in Shanghai.

The Bloomberg story, which was later carried on Malaysian daily The Star as well as The Business Times, cited unnamed sources saying Taikang Insurance Group and Shanghai Hongxin Medical Investment Holding are also weighing participating in the deal.

"Any proposals with regard to IHH Group's investment in any subsidiaries would have to be considered and decided by the board of directors of IHH and/or its relevant subsidiaries," IHH said.

IHH shares closed 0.15 per cent lower at RM6.69 on Wednesday (Nov 24) in Kuala Lumpur, and 0.46 per cent higher at S$2.17 on the SGX.

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