Parkway buys 31% of Pantai<\/p>\n
Chan Sue Ling and Yoolim Lee, Bloomberg\/Singapore<\/p>\n
Parkway Holdings Ltd., Asia's second-biggest publicly traded
\nhospital operator, bought a 31 percent stake in Malaysia's Pantai
\nHoldings Bhd. for S$139 million (US$83 million) to expand in
\nSoutheast Asia.<\/p>\n
The purchase of Malaysia's No. 1 private health-care service
\nprovider will double the number of hospitals Parkway operates in
\nthe region to 14. Parkway runs three hospitals in Singapore, two
\nin Malaysia and one each in India and Brunei.<\/p>\n
\"The acquisition will enable us to grow our presence\" in
\nMalaysia, \"from two hospitals to nine hospitals and ancillary
\nfacilities across the country,\" Chairman Richard Seow said today
\nin a statement. \"It is in line with our strategic direction of
\nbuilding on our strengths and growing in key regional markets.\"<\/p>\n
Newbridge Capital LLC, a San Francisco-based fund that bought
\n26 percent of Parkway for S$312 million in May to become the
\nbiggest shareholder of the company, has said it aims to boost
\nreturns by focusing on acquisitions for regional expansion.<\/p>\n
\"Parkway is trying to grow the number of hospitals to provide
\nthe first-class health-care services in key cities like Singapore
\nand Malaysia,\" said Jay Moghe, who manages $25 million as chief
\nexecutive at Stork Capital Asia Pte in Singapore. \"That makes
\nsense, and I would be quite positive on the stock.\"<\/p>\n
The acquisition would boost Parkway's earnings per share to
\n7.6 cents from 7 cents, based on the audited financial statements
\nof the company and its subsidiaries at the end of 2004, Parkway
\nsaid in a separate statement. Net tangible asset per share would
\nfall to 37 U.S.cents from 54 U.S.cents, it said.<\/p>\n
Kuala Lumpur-based Pantai posted net income of 43.5 million
\nringgit ($11.5 million) in the fiscal year ended June 30, 2005,
\ncompared with a loss of 112.7 million ringgit a year earlier.
\nSales rose 15 percent to 705.8 million ringgit.<\/p>\n
Parkway's purchase is the latest in a series of corporate
\nacquisitions between Malaysia and Singapore.<\/p>\n
CIMB Bhd., Malaysia's biggest investment bank, in January
\nagreed to buy G.K. Goh Holdings Ltd.'s stockbroking business for
\n555 million ringgit, expanding in Singapore as stock markets of
\nthe two countries strive to build closer links. Last month,
\nTelekom Malaysia Bhd., the nation's biggest telephone operator,
\nand Khazanah Nasional Bhd. agreed to pay S$260.8 million to
\nincrease their stake in Singapore's MobileOne Ltd.<\/p>\n
\"Since there was a change in leadership in both countries,
\nthere has been warming of economic cooperation and all the taboos
\nare no longer taboos,\" said Moghe. \"This is a trend that's likely
\nto continue.\"<\/p>\n
Malaysia's economy is forecast by the central bank to expand 5
\npercent to 6 percent this year, compared with the 3.5 percent to
\n4.5 percent growth the government expects in Singapore.<\/p>\n
Malaysia, Southeast Asia's third-largest economy, earned 29.7
\nbillion ringgit from tourism last year, making it the country's
\nbiggest foreign exchange earner after exports. The government
\nwants to boost overall visitor arrivals to a record 16.8 million
\nthis year from 15.7 million in 2004.<\/p>\n
Parkway shares fell 1 cent, or 0.5 percent, to S$2.14 at the
\nclose of trading, after gaining as much as 3.3 percent earlier.
\nThey have risen 43 percent this year, compared with a 12 percent
\nrise in the benchmark Straits Times Index. The shares resumed
\ntrading at 2 p.m. after being suspended in the morning session.<\/p>",
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