PETALING JAYA: Ekuiti Nasional Bhd (Ekuinas) has sold its 60% stake in its third party claims administrator (TPA) service providers, MediExpress Group and PMCare Sdn Bhd to Sumitomo Corp.
With that, Sumitomo will emerge as the majority shareholder in both MediExpress and PMCare.
Ekuinas said in a statement yesterday that the minority/Malaysian shareholders have partially exited but will continue to hold a meaningful stake and remain as management in the respective entities.
Ekuinas CEO Syed Yasir Arafat Syed Abd Kadir (pix) noted that Ekuinas had successfully delivered on its value creation plans for both MediExpress and PMCare over the investment period.
“These efforts comprise operational enhancements of processes and systems, strengthening management and operation teams as well as increasing their market share. Through this divestment, Ekuinas will generate a minimum internal rate of return (IRR) of 38.8%,” he said.
“We were very focused on ensuring that their next partner would be well-equipped with the right capabilities and vision to continue charting the companies’ positive future. Sumitomo is at the forefront of the healthcare services industry as well as their reputation and experience will bode well for the growth of MediExpress and PMCare,” he added.
This divestment also brings Ekuinas’ total realisation proceeds to more than RM2 billion. Ekuinas initially invested in MediExpress and PMCare in 2015, which marked the company’s first foray into the healthcare sector.
MediExpress comprises MediExpress (Malaysia) Sdn Bhd and Health Connect Sdn Bhd. Both MediExpress and PMCare are primarily focused on managing both inpatient and outpatient benefits on behalf of their clients.
While MediExpress focuses on insurance companies, PMCare services mainly corporate clients. Together, they cater to over two million members across more than 3,000 medical providers in Malaysia.
Sumitomo is a Fortune 500 global trading and business investment company with 110 locations in 65 countries, regions and 22 locations in Japan.
The entire group comprises over 900 companies.
