I am glad, very glad Government postphoned its decision for the offer from Sime Darby for a 51% takeover. It would be more glad if it had been aborted. One factor that made me uncomfortable with the takeover is that it is done by Sime Darby.
Are we sure Sime Darby has the right management and mental mobility to manage a well run and reputable healthcare institution like the National Heart Institute (IJN)? Their own Subang Jaya Medical Centre is not doing as well. After so many years it remains only a branch, while other later groups have proliferate all over the country. Complains is on the rise.
Sime Darby is a conglomorate, more now, to be serious and focus in proving its mettle in healthcare industry. But Sime Darby have some big plans at the border of Selangor and Negeri Sembilan.
That adds to the worry.
Sime Darby have never proven any success in its corporate mergers and takeover. The organisation shouldn't have gone smaller to be more agile but instead it went bigger. It inherited a blue blood attitude - lazy, stdgy, and bureaucratic red tapes. The organisation is accountant-run, thus the ability in building businesses is on the decline. That is partly for its preference for M&A as growth strategy.
I'm particularly worried on the fat that 51% control of IJN be given to Sime Darby. For Khazanah with 51% effective equity on Pantai, it is Parkways' 49% equity that is having management control. Thats an upcoming revelation. Alert Azman Mokhtar. Telor busuk nak pecah!
My revelation last Friday invited some enquiry on the numbers. The Edge article revealed IJN posted a revenue of RM287.3 million last year, up 11.7% from RM257.5 million in 2006. Its net profit was lower at RM13.6 million against RM22 million previously.
My source revealed to me that profit is some RM200 million and reserves RM400 million. However, Stocktube.blogspot concur the reserve figure of RM400.
Is that whats giving the Sime Darby Board of Directors hard-on in their pants? The Company will face a challenge rising to the stakeholders expectation, since the humongously gargantum of a tri-merger. See this link here of Sime Board members to guess whose having endless hard-ons. Hamsap ole buggers. If I am CEO Zubir Murshid, I'll be repeatedly knocking my knees to bring that damn thing down. Pity the wife.
I was also enquired about my source's claim that IJN received lots of donation. Upon double checking, its revealed further that IJN helped more than 80 patients this year (?). The bill comes in the tune of about RM2 million. Such is the nature of source. But didn't I seek to be corrected? My source still insist on most of those figure I had provided. We concur in that we are not comfortable with the new Chairman of IJN.
By the way, Chua Soi Lek had a hard-on too but he knows how to control it these days. He is concern and grouse is on the future of the healthcare services. Read his blog.
17-12-2008: Sime Darby eyes IJNIsn't Tan Sri Dr Wan Zahid an educationist? Or is his doctorate in physical education involves healthcare?
by Lim Shie-Lynn
KUALA LUMPUR: Sime Darby Bhd has expressed interest in taking over the National Heart Institute, or Institut Jantung Negara (IJN), a move that has met with objections from the ministry of health, sources said.
It is learnt that the ministry of finance (MoF), which owns IJN, has submitted a proposal for the privatisation of the hospital to the cabinet. Health industry officials are not surprised by the MoF’s move as the ministry had sent out feelers to government-linked companies to gauge the interest in such an exercise.
Sources said that both Health Minister Datuk Seri Liow Tiong Lai and his deputy Datuk Dr Abdul Latiff Ahmad do not agree to the proposed divestment.
“They do not agree to this sale unless there is a safety net for the poor and the underprivileged. Their needs have to be taken care of. And the time is not right,” said a source.
Sources said Sime Darby’s interest and the positive reception from the MoF do not in any way mean that a deal is certain.
“It’s a preliminary exploration. There is still a long way to go as there are a lot of things to be ironed out,” said one of the sources.
One of the concerns is whether IJN’s charges would increase should it be taken over by a private corporation.
Considering IJN is a quasi-government hospital, its fees are regulated by the government, offering first-class medical treatment at below market rate. Also, all government hospitals have referred their heart patients to IJN, providing it a steady stream of patients and income.
However, it is learnt that even if Sime Darby takes over the hospital, there would be conditions put in place to ensure that the charges are regulated and IJN does not lose sight of its social obligations.
“The government would still dictate the treatment price for patients. It would be business as usual for the heart centre,” the source said.
The conglomerate’s entry into the cardio centre is not necessarily a bad idea as IJN would be able to retain its team of doctors and specialists given that the centre would be backed by the cash-rich Sime Darby.
“Many of IJN’s doctors are leaving because the remuneration is not attractive enough. With Sime Darby in the picture, the doctors would be better paid and government hospitals would still be able to train their doctors there as well,” an industry source said.
According to IJN’s website, the heart centre has a staff strength of more than 1,000. There are 85 cardiologists, cardiothoracic surgeons, paediatric cardiologists and anaesthe-tists. It also has close to 500 nurses.
To manage its growing operations, IJN has embarked on an expansion plan. It is building a new wing which is scheduled for completion next year.
The new wing would give it an additional 192 beds, four new operating theatre complexes, new intensive care units and coronary care units, dialysis centre, health screening centres, cafes and shops, according to the website.
A source said it was likely that Sime Darby would be allowed to set up a private wing in IJN.
IJN, which specialises in cardiovascular and thoracic cases, was part of the Kuala Lumpur Hospital. In 2005, it was placed under IJN Holdings Sdn Bhd, which is 99.99% owned by the Minister of Finance Inc.
Sime Darby’s interest in IJN ties in with plans to expand its healthcare business. Sime Darby Healthcare’s (SDH) supervisory committee chairman and Sime Darby board member Tan Sri Wan Zahid Noordin was quoted as saying the healthcare arm was geared up to grow its business, with the focus on specialist treatment and training.
The healthcare division contributed RM20 million in earnings for FY08. SDH runs a medical centre, a specialist centre and a nursing college.
According to filings made to the Companies Commission of Malaysia, IJN posted a revenue of RM287.3 million last year, up 11.7% from RM257.5 million in 2006. However, net profit was lower at RM13.6 million against RM22 million previously.
Since its establishment, IJN has earned a reputation as a leading centre for cardiac care in the region. It has treated well over a million patients, including former prime minister Tun Mahathir Mohamad.
Sime plans mega project,12,000ha multi-themed scheme to kick off next year
BY WONG SAI WAN
The Star, Friday December 19, 2008
KUALA LUMPUR: SIME Darby Bhd will carry out a massive development project at the Negri Sembilan-Selangor border covering some 12,120ha, with the first launch expected next year.
The development will be based on five themes – health, education, sports, hi-tech and recreation – and will be located at its present Labu and Tanah Merah estates.
Each theme will be developed as an integrated city and the cities will be interconnected.
The first to be launched next year will be the Medical City, which will encompass training colleges, a medical centre of excellence, teaching hospitals and even housing units built for the elderly and infirm.
“We will even invite other medical companies, especially international ones, to set up their facilities in this city.
“We will also be building a nurses training centre to produce 15,000 nurses a year,” said Sime Darby president and chief executive Datuk Seri Ahmad Zubir Murshid.
He was speaking at a media briefing to announce that the Goverment had agreed in principle to Sime Darby’s proposal to buy up to 51% of IJN Sdn Bhd, which operates the national heart institute, Institut Jantung Negara.
Zubir said a second IJN would be built at the Labu Medical City which would also see four other “centres of excellence,” including one for cancer treatment. He said the five cities would be like “multiple Subang Jaya(s),” which was also developed by Sime Darby.
On the purchase of a majority stake in IJN, he explained that it made sense because the group’s healthcare division’s long term plan was to set up several centres of medical excellence.
However, he stressed that “it was not yet a done deal” as due diligence of IJN had yet to be done. He also denied that IJN made more money than Sime Darby’s medical services business.
“Last year IJN made RM20mil while (Sime Darby’s) SJMC made RM25mil. This is a marriage and not a takeover. The synergy from this win-win situation is tremendous,” Zubir said.
Aiyah ... build your own la, if you got that kind of money!
Now I am wondering, if the Chairman of Khazanah himself that is having a hard-on on IJN. I'll tell you why when I can find the news report.