KUALA LUMPUR: IHH Healthcare Bhd 's divestment of its entire 62.2% stake in Continental Hospitals Pte Ltd will allow the hospital group to focus on deepening its presence in India through Fortis Healthcare, says AmInvestment Bank Research.

       In a Dec 14 statement, IHH announced it had completed the sale of its entire stake in Continental Hospitals to Dr Gurunath Reddy and affiliates, who is the partner shareholder in the Hyderabad hospital.

       IHH said the sale was part of its portfolio strategy review to strengthen its healthcare capabilities for its patients and creating more value for stakeholders.

       "Our priority remains in deepening our presence in India, which is a key market for IHH through its multi-city based platform assets, and to continue working hand in hand with our people and the government," it added.

       AmInvestment said following the sale, IHH's exposure in India remains significant, post-disposal, via Fortis Healthcare, which operates 27 hospitals and 4,000 beds.

       Continental Hospitals, according to the research firm, has more than 200 beds, but it is a small number relative to the 15,000 beds owned by IHH.

       However, it said it could not ascertain a financial evaluation as the selling price was not disclosed.

       "Pending details on the selling price, we maintain our earnings estimates for FY21, FY22 and FY23," it said.

       AmInvestment maintained its "hold" call on IHH with an unchanged fair value of RM6.27.