KUALA LUMPUR: Ekuiti Nasional Bhd (Ekuinas) has sold all its 60 per cent stake in third-party claims administrator (TPA) service providers MediExpress Group and PMCare Sdn Bhd to Sumitomo Corp for an undisclosed sum.
Ekuinas invested in MediExpress and PMCare in 2015, its first foray into the healthcare sector.
MediExpress, which comprises MediExpress (Malaysia) Sdn Bhd and Health Connect Sdn Bhd, and PMCare are 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.
“Over the investment period, Ekuinas has successfully delivered on its value creation plans for both MediExpress and PMCare,” said Ekuinas chief executive officer Syed Yasir Arafat Syed Abd Kadir in a statement today.
“These efforts comprise of 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 per cent,” he added
He said the latest divestment had brought Ekuinas’ total realisation proceeds to more than RM2 billion.
He said Sumitomo was at the forefront of the healthcare services industry, adding that its reputation and experience will bode well for the growth of MediExpress and PMCare.
Sumitomo is a leading Fortune 500 global trading and business investment company with 110 locations in 65 countries, regions and 22 locations in Japan. The entire Sumitomo Group consists of more than 900 companies.
Its core business areas include metal products, transportation and construction systems, infrastructure, media and digital, living related and real estate, mineral resources, energy, and chemical and electronics.