Khazanah readies for collaboration with Apollo

Malaysian sovereign fund Khazanah Nasional Berhad’s battle with India’s second largest private healthcare player, Fortis, is over. It is time for the investment firm to collaborate with the country’s largest private healthcare chain, the Apollo Hospitals Group.

With Fortis’ exit from the bidding war to acquire Singapore based Parkway Holdings, Khazanah’s assurance to Parkway shareholders — to seek the assistance of the other healthcare firms where it had invested (Apollo being the biggest) to create synergies for Parkway — gains attention.

Though Apollo, where Khazanah has a 12.2 per cent stake, is not clear about its possible role in Khazanah’s efforts, the open offer document provides a glimpse into the six probable areas of cooperation. In a recent interaction, an Apollo promoter had informed that the most suitable area of collaboration, according to them, was in the area of medical education.
 

KHAZANAH SEEKS

* Leveraging the existing market presence, brand exposure and track records of these firms 

* Achieving savings in procurement and a more efficient hospital management system

* Tap opportunities in the wellness market and enhancing the potential for medical tourism in the region by providing a cross-geographical hospital network

* Creation of a pan-Asian medical education franchise 

* Enhancing the recruitment, development and retention of leading medical talent 

* Drive regional expansion on a platform of providing high quality hospital and healthcare services across geographical boundaries

In addition to Apollo, the other healthcare firms where Khazanah remains invested are Malaysian hospital chain Pantai and medical university IMU.