KUALA LUMPUR: PublicInvest Research has issued a neutral call on IHH Healthcare Bhd with an unchanged target price of RM6.03 as the company rebalanced its portfolio in India.
The research house said Reuters and some news portals have reported that IHH is exiting Apollo Hospitals Enterprise Ltd by selling its entire 4.78 per cent stake for RM558 million.
This is being done because, strategically, IHH prefers management control, said PublicInvest Research.
"Given IHH’s preference for management control, and having acquired Global Hospitals chain and Continental Hospitals, it is just intuitive for IHH to rebalance its portfolio in order to realise its strengths and capabilities in the India market, on top of gaining extra cash in hand for development and working capital purposes." the firm explained in its report.