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34. Non-cancellable operating lease commitments (continued)
The Group has entered into a contractual agreement with Amanah Raya Berhad (as Trustee for Al-’Aqar Healthcare
REIT) and Damansara REIT Managers Sdn Bhd to lease the hospital land and buildings including certain equipment
for a period of mfteen years, with an option to renew for another mfteen years subject to terms and conditions as
stipulated in the agreement.
35. Contingent liabilities
Upon the adoption of FRS 139, the mnancial guarantees provided to mnanciers for subsidiaries are no longer disclosed
as contingent liabilities, but would instead be recorded as mnancial liabilities if considered likely to crystallise. The
Company has assessed the mnancial guarantee contracts and concluded that the mnancial impact of the guarantees
is not material.
36. Significant events
(a) Proposed Acquisition by Kumpulan Perubatan (Johor) Sdn Bhd (“KPJSB”)
On 22 June 2011, Pahang Specialist Hospital Sdn Bhd (“PSHSB”), a wholly-owned subsidiary of KPJSB, proposed
to acquire a 3.12 acre leasehold land for a total consideration of RM3,756,750 to be satismed via issuance of
3,756,750 ordinary shares of RM1.00 each in PSHSB.
The proposed acquisition is expected to be completed by 2nd quarter 2012.
(b) Disposal by Kumpulan Perubatan (Johor) Sdn Bhd (“KPJSB”)
On 30 April 2010, KPJ proposed to dispose its entire interest in Rumah Sakit Bumi Serpong Damai (“RSBSD”)
Building, Kluang Utama Specialist Hospital Building and Bandar Baru Klang Specialist Hospital Building to
Al-‘Aqar Healthcare Real Estate Investment Trust (“Al-‘Aqar Healthcare REIT”) for a total sale consideration of
RM138.77 million to be satismed partly by cash consideration of RM83.26 million and RM55.51 by the issuance
of 56.64 million new units in Al-‘Aqar at an issue price of RM0.98 per unit to be credited as fully paid-up. The
disposal was approved by shareholders on 17 December 2010.
The disposal of RSBSD Building was completed on 2 August 2011.
The disposal of Kluang Utama Specialist Hospital Building was completed on 6 January 2012.
(c) Issuance of up to RM500 million Islamic Commercial Papers/Islamic Medium Term Notes
(ICP/IMTN Programme)
On 3 May 2011, the Company remnanced its existing Commercial Papers/Medium Term Notes (“CP/MTN”) with
the mrst issuance of ICP/IMTN up to RM500 million from RM250 million.
The ICP/IMTN Programme will be utilised to repay the existing RM250 million CP/MTN programme and the
remaining balance to mnance the expansion of healthcare related business.
(d) Joint Venture between Kumpulan Perubatan (Johor) Sdn Bhd (“KPJSB”) and Yayasan Islam Perlis (“YIP”)
On 11 July 2011, Kumpulan Perubatan (Johor) Sdn Bhd (“KPJSB”) had signed a Joint Venture Agreement (“JVA”)
with Yayasan Islam Perlis (“YIP”) for the purpose of designing, developing, building, completing, owning and
subsequently operating from a hospital building to be known as “KPJ Perlis Specialist Hospital” (“JV”).
(e) Proposed Acquisition of Land at Klang District, Selangor.
On 11 November 2011, Kumpulan Perubatan (Johor) Sdn Bhd (“KPJSB”) entered into a Sale and Purchase
agreement (“SPA”) with Sazean Development Sdn Bhd to acquire four (4) plots of land with an aggregate area of
approximately 1.8 hectares, for a total cash consideration of RM23,762,400, located at Mukim of Klang District
of Klang State of Selangor.
The Proposed Acquisition is expected to be completed by the 4th quarter 2012.
NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2011 (continued)
ANNUAL REPORT 2011 178