Initial Public Offering of IHH Healthcare Berhad

RNS Number : 4420I

Symphony International Holdings Ltd

25 July 2012

 



Not for distribution, directly or indirectly, in or into the United States or any jurisdiction in which such distribution would be unlawful.

25 July 2012

Symphony International Holdings Limited (the "Company")

Initial Public Offering of IHH Healthcare Berhad (formerly known as Integrated Healthcare Holdings Berhad)

On 1 February 2012, the Company announced that it had invested approximately US$50 million in a minority stake in Integrated Healthcare Hastaneler Turkey Sdn Bhd ("IHT"). The remaining interest in IHT was held by IHH Healthcare Berhad ("IHH"). IHH is the healthcare subsidiary of Khazanah Nasional Berhad, the investment holding arm of the government of Malaysia.

At the time of the investment, there was an agreement that the Company would convert its investment in IHT for a minority interest in IHH at the time of an initial public offering of IHH.  Further details are set out below.

The Company is pleased to note that the shares of IHH commenced trading today on the main market of the Bursa Malaysia Securities Berhad ("Bursa Securities") and the Main Board of the Singapore Exchange Securities Trading Limited ("SGX-ST"). IHH shares were priced at 2.80 Malaysian ringgit ("RM") on the Bursa Securities and at 1.113 Singapore dollars on the SGX-ST. The Company holds, as a result of the share exchange summarised below, 56,203,299 ordinary shares in IHH, which were admitted to trading today. 

The IHH initial public offering raised a total of approximately US$2 billion, and as at 24 July 2012 had an implied market capitalisation of approximately US$7.1 billion¹. IHH is one of the largest listed healthcare providers in the world by market capitalisation. Its portfolio of healthcare assets includes Parkway Holdings Limited, Pantai Holdings Berhad, International Medical University, Acibadem Saglik Yatirimlari Holding A.S. ("ASYH"), IHT and a significant shareholding in Apollo Hospitals Enterprises Limited. IHH has a broad footprint of assets in Turkey, Malaysia, Singapore, India and a presence in China, Brunei, Abu Dhabi, as well as Central and Eastern Europe.

Impact on the Company's portfolio

Symphony customarily reports the split of listed and non-listed investments within its portfolio.  As such, given that the investment in IHH is now a listed investment, Symphony's Investment Manager has provided an updated breakdown of the Net Asset Value and Net Asset Value per Share, to show the change in the Company's portfolio.

The Company's total Net Asset Value as at 31 March 2012 was US$413.5 million (US$1.19 per Share). Of this total, temporary investments (cash net of working capital) constituted US$14.2 million (US$0.04 per Share) and listed investments constituted US$176.5 million (US$0.51 per Share), with unlisted investments accounting for the balance of US$222.8 million (US$0.64 per Share).²

Using the figures above, and treating the investment in IHT as a listed investment, the value of the Company's pro forma listed investments and temporary investments (cash net of working capital) at 31 March 2012 (and making no adjustments for movements in exchange rate or share price) equates to US$240.8 million³ (US$0.70 per Share²), being 58.2% of the 31 March 2012 Net Asset Value.

The fair value of the Company's investment in Minor International Public Company Limited and Parkway Life Real Estate Investment Trust as at 31 March 2012 was US$121.7 million and US$54.8 million respectively, and as at 30 June 2012 was US$140.4 million and US$56.7 million respectively. The fair value of the Company's stake in IHH as at 24 July 2012, was US$49.5 million.^{1 1}

¹This figure was calculated using the institutional offer price of RM2.80 per IHH share, and an exchange rate of US$1.00 : RM3.1789 from Bloomberg as at close of business (Singapore time) on 24 July 2012.

²Using an issued share capital of 346,498,956 ordinary shares in the Company.

³This figure was calculated by including the value of the Company's investment in IHT, which has now been exchanged for listed shares in IHH, in the listed investments figure.

Details of the share exchange

In February 2012, the Company made an initial investment in IHT and agreed with IHH, a majority shareholder in IHT, that it would convert its shares in IHT into a minority interest of equivalent value in IHH at the time of an initial public offering by IHH. The number of IHH shares issued to the Company was based on the original acquisition amount paid by the Company for its investment in IHT less the Company's pro-rata share of transaction costs associated with the acquisition of ASYH and the price at which the IHH shares were admitted to the Bursa Securities, being RM2.80 per IHH share. The foreign exchange rate applied to the conversion was US$1.00 to RM3.1760. The Company is obliged not to sell, transfer or dispose of the IHH shares it received pursuant to the above conversion for a period of 180 days from the date on which they were allotted and issued to the Company.

For further information, please contact:

Symphony Asia Limited

Sunil Chandiramani                            [phone]

FTI Consulting

Neil Doyle                                          [phone]

About Symphony International Holdings Limited

Symphony International Holdings (LSE:SIHL) is a London listed strategic investment company that invests in consumer businesses and develops luxury branded real estate, hospitality and healthcare ventures which are principally in Asia. It offers a way for investors to gain exposure to the rising disposable incomes and wealth in fast growing economies. Symphony's objective is to provide superior capital growth by investing in high quality companies and forming long-term business partnerships with talented entrepreneurs. Symphony is managed by Symphony Investment Managers which has a team of investment professionals with a broad range of expertise - many of them have been working in Asia for more than 25 years. For more information please visit our website at www.symphonyasia.com.

No representation or warranty is made by the Company as to the accuracy or completeness of the information contained in this announcement and no liability will be accepted for any loss arising from its use.

This announcement is for information purposes only and does not constitute an invitation or offer to underwrite, subscribe for or otherwise acquire or dispose of any securities of the Company in any jurisdiction. All investments are subject to risk. Past performance is no guarantee of future returns. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decisions.

This announcement is not an offer of securities for sale into the United States. The Company's securities have not been, and will not be, registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent registration or an exemption from registration. There will be no public offer of securities in the United States.

End of Announcement

 

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