FW: [PROMUDA-Circle] IHH Healthcare - Singaporeans behind Khazanah?
Zil Kamal Mokhtar
Sent from my Windows Phone
From: donrahim2001
Sent: 5/7/2012 16:03
To: promuda...@yahoogroups.com
Subject: [PROMUDA-Circle] IHH Healthcare - Singaporeans behind Khazanah?
Dear all,
Pasal IHH healthcare IPO, let me comment a bit.
- Khazanah has claimed credit for the success of IHH and its listing, but in my view I suspect it is the Singaporeans who played a role in masterminding the whole deal right from the start!
Haha .
Why?
Answer : Kita kena anaylse sikit.
First, hey siapa CEO IHH tu?
Answer : Dr Lim Cheok Peng;
http://biz.thestar.com.my/news/story.asp?file=/2012/7/4/business/20120704090422&sec=business
Who is he?
Answer : A Singaporean. See
https://www.alumnet.nus.edu.sg/ContentImages/Contributions/lim_cheok_peng.pdf & http://investing.businessweek.com/research/stocks/private/person.asp?personId=8360395&privcapId=7653062&previousCapId=131692&previousTitle=Parkway%20Group%20Healthcare%20Pte%20Ltd.
and notice that he has been steering Parkway (a S'pore Company then) since 1987.
See http://www.gleneaglescrc.com/?page_id=217
What has that got to do with the suspicions that the S'poreans played a role in masterminding the whole deal?
Answer : Well, ini kena go down memory lane sikit.
What memory lane?
Answer : Remember the controversy when Pantai shares were sold to Parkway back in 2005? (And when rocky lost his job for publishing it in the mail back then). I quote from rockybru;
" .which front-paged the sale of Pantai to Singapore. The order had come via a phone call to a Cabinet Minister from someone close to the Prime Minister, who was then in Australia for a minor surgery, so the Malay Mail article ruffled powerful feathers at the PMO's 4th floor. The rest, as they said, is history. See; http://www.rockybru.com.my/2010/05/pantai-returned-sin-atoned.html
What does the above mean?
Answer : The strength of Parkway's relationship with our PM Paklah and his cronies back then!
I quote;
"For the record, there was never any formal approval from the FIC for Parkway's purchase of Pantai and sources from Parkway back then were bragging that they were dealing directly with the "highest sources in (Malaysian) government". That was how 2 government concession landed up with foreigners".
See http://www.rockybru.com.my/2010/05/pantai-returned-sin-atoned.html
What is the relevance of that now?
Answer : Despite the change of the country's leadership, the relationship with M'sia infact flourished, thanks to Khazanah.
So what happened then?
Answer : Because of the controversy then, Khazanah had to buy back the Pantai shares from Parkway back in 2006. But instead of buying the shares outright, they bought into Parkway instead thus creating some form of a mild joint venture.
See http://www.rockybru.com.my/2006/08/majulah-singapura-pt-10.html http://www.rockybru.com.my/2006/08/joget-pantai-irama.html
Apa jadik lepas itu?
Answer : Things went quiet, but in 2010, Khazanah increased its holdings in Parkway to 51%.
See http://biz.thestar.com.my/news/story.asp?file=/2010/5/28/business/6353245&sec=business
Apa significance deal itu?
Answer : In this deal, there were allegations that Khazanah was snookered by the Singaporeans! See below.
I quote the following from the posting on 5 August 2010 by http://syedsoutsidethebox.blogspot.com/2010/08/another-rm-935-million-khazanah-fiasco.html
- Khazanah had a 24% stake in Parkway Holdings, a Singapore listed company that runs health care facilities (hospitals lah). Despite holding a 24% stake, Khazanah has not taken over management control (for err say five years now). Khazanah did not even take control of the Board. They let the Singaporeans run the business for them. This was an Ali Baba situation. For a long time, Khazanah also has very Singapore friendly folks working on the inside.
- Then in March this year two Punjabi brothers from India appeared on the scene. They also bought about 24% in Parkway. Immediately they appointed four Directors to the Board, including the Chairman and the Managing Director. They say that these Indians are long term hospital players. They are indeed hospital players but their quick exit from Parkway (hundreds of millions of Ringgit richer) does not suggest they were long term players.
- Surprisingly it was Khazanah's trusted Ali Baba friends in Singapore who sold the strategic stake to the two Indians. Not only that but Directors associated with the trusted Ali Babas entered into contractual pacts (all legal and proper of course) with the Indians which gave the Indians control of the Board of Directors. Khazanah the groom was left outside the bridal chamber holding the best man's pants. I think Khazanah got snookered by the Singaporeans.
- This is when Khazanah fell for greenmail. The Indians had bought their 24% stake in Parkway for S$3.56 per share. Khazanah first offered to buy back their shares at S$3.78. The Indians played shy. They counter offered to buy out Khazanah instead at S3.80 two cents higher.
- This is why I think they were not serious long term players. A serious long term player would not offer just two cents higher if they really wanted to keep the shares. The two cent offer was just a teaser to make Khazanah counter offer even more money. (Also to tell Khazanah that they are only worth a couple of cents - which I agree). Lo and behold Khazanah did counter offer at S$3.95 per share.
- With much regret, sorrow in their hearts and a heavy feeling inside their turbans the two Indian brothers accepted Khazanah's S$3.95 offer price. In just four short months the Indians had made S$0.39 per share, resulting in a net gain of S$117.0 million (RM274.0 million) for the Indians.
- I feel this is what the Indians had in mind all along. That's our money folks. I have the suspicion that they may have had "inside" help. There are too many Singapore related deals in Khazanah. There are too many Singapore friendly folks in Khazanah too.
So apa lagi joint venture dengan Parkway?
Answer : IHH also holds a 35.8 per cent stake in Parkway Life real estate investment trust (REIT), one of Asia's largest healthcare REITs with 36 properties in total.
See http://www.btimes.com.my/Current_News/BTIMES/articles/ihipo/Article/
What's my point to all the above?
Notice the following;
- When the S'poreans Parkway tried to gain a foothold in M'sia (back in 2005 through Pantai Holdings) that failed becase of public uproar.
- Strong suspicion then that their link then was with the previous PM and his cronies. (That was when FIC approval was bypassed when they bought into Pantai).
- But despite the change of country's leadership in 2009, that link fourished thanks through Khazanah. (boleh check lah siapa from Khazanah yang dok kat board parkway since 2008).
- I suspect the revised strategy then was to do a joint-venture with Khazanah with Khazanah being in the limelight but with them working behind the scenes in my view. (Remember them allowing Parkway to be taken over by Khazanah, and now Parkway's man as IHH CEO). In the process, makes them (S'poreans Parkway) richer along the way!
- Of course, they get richer through realised holdings (sale of Parkway's stake to Khazanah as highlighted above), but Khazanah's gain in IHH amounting to RM5bio is unrealised (means paper money profit je unless stake is sold)!
CONCLUSION :
- IHH may be a M'sian success story. But in the background are S'poreans, with links to the old Parkway. That is what we don't know, but now know!
- If back in 2005, Parkway tried to gain into Msia's foothold though Pantai Holdings was unsuccessful, now Khazanah appears to be their "kuda"! Khazanah may get the limelight but it is actually them in the driver's seat & running the show in my view! (Ini semua tak salah. Yelah, business arrangement kan that can bring benefits to both parties).
- So siapa lagi bijak actually? Hehe
Salam,
Don
p.s. Well done PM Najib and the cabinet kalau kena snookered by the S'poreans through Khazanah!
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