Cypark signs MOU to operate specialist hospital in Johor

09 Feb 2023

Cypark Resources Bhd has entered into a memorandum of understanding (MOU) to build and operate a private hospital on a five-acre land belonging to Universiti Teknologi Malaysia (UTM) in Skudai, Johor.

The renewable energy company signed the MOU with UTM’s wholly owned subsidiary UTM Holdings Sdn Bhd, and Selgate Healthcare Sdn Bhd — a unit of the Selangor State Development Corporation (PKNS).

“The specialist hospital will be adopting renewable and energy efficient technologies that will be in tandem with efforts in environmental, social and governance (ESG).

“The application of sustainable technologies will help the specialist hospital provide a secure and reliable source of energy that will reduce both costs and carbon emissions. In this aspect, Cypark will bring valuable expertise which will be the state of the art of this eco-friendly hospital,” Cypark said in a bourse filing.

Under the MOU, Cypark and UTM Holdings will establish a joint venture company with Cypark holding 90% of the shares and UTM Holdings the remaining 10%..

“The joint venture company is a special purpose vehicle for both parties to undertake the design, development, construction and project management based on the terms and conditions agreed by the parties, which shall be further agreed and negotiated for a set of definitive agreements or other associated agreements in relation to the project,” Cypark said.

Selgate, meanwhile, will operate the hospital for a 30-year period and is responsible to obtain and maintain all required approvals from the Ministry of Health and other authorities for the licence to operate a private specialist hospital.

In addition, Selgate would pay the lease to the joint venture company over a 30-year period, based on terms and conditions agreed by the parties.

Shares of Cypark closed 3.45% or four sen higher at RM1.20 on Thursday (Feb 9), giving the company a market capitalisation of RM927.73 million.

Source: The Edge Markets