Malaysia’s Ekuinas sells stakes in healthcare-related firms to Sumitomo Corp
08 April 2019
Category: News, Asia, Malaysia
By Asia Asset Management
Malaysia’s state-owned private equity fund management company Ekuiti Nasional (Ekuinas) has sold its 60% shareholding in two third-party claims administrator service providers to Japan’s Sumitomo Corp for an undisclosed sum.
Ekuinas acquired the stakes in MediExpress Group and PMCare in 2015 for 79.8 million ringgit (US$19.55 million).
According to Ekuinas Chief Executive Officer, Syed Yasir Arafat Syed Abd Kadir, the company has “successfully delivered on its value creation plans” for the firms.
“These efforts comprise of operational enhancements of processes and systems, strengthening management and operation teams as well as increasing their market share,” he says in a statement on April 3, adding that the sale will generate a minimum internal rate of return of 38.8% for Ekuinas.
Mr. Syed Yasir says Ekuinas wanted to ensure that the buyer is “well-equipped with the right capabilities and vision to continue charting the companies’ positive future”.
He says Sumitomo Corp is at “the forefront of the healthcare services industry” and that its “reputation and experience will bode well for the growth of MediExpress and PMCare”.
Ekuinas says the sale brings total proceeds realised from its divestments in investee companies since it was set up in 2009 to more than 2 billion ringgit.
Ekuinas had 4.1 billion ringgit of funds under management at the end of 2017.