KUALA LUMPUR (June 10): KPJ Healthcare Bhd (KL:KPJ) said on Monday that it has secured an RM18.3 million contract for hospital renovation work, in a related party transaction.

KPJ, through its indirect wholly owned unit Bandar Dato Onn Specialist Hospital Sdn Bhd, issued a letter of acceptance to Tg Langsat Development Sdn Bhd (TLDSB) for the renovation of floors 8 and 9 at KPJ Bandar Dato Onn Specialist Hospital (KPJ BDOSH).

TLDSB is a wholly owned unit of TPM Technopark Sdn Bhd, which in turn is an indirect subsidiary of Johor Corp (JCorp). Meanwhile, JCorp is KPJ’s major shareholder, holding a 44.99% stake in the private healthcare group.

With KPJ BDOSH currently operating at 80% capacity, the proposed renovation work will increase the hospital’s current number of beds from 90 to 150 to cater to more patients, according to KPJ.

“In addition, the new wards would continue KPJ BDOSH’s current customer experience objective by raising the number of single bedded wards available in the hospital,” KPJ said in an announcement to Bursa Malaysia.

“The proposed renovation work is in line with KPJ BDOSH’s interest in targeting health tourism as well as expanding into a new geographical market,” the group added.

The proposed renovation work is expected to be completed by November.

Shares of KPJ closed unchanged at RM1.94 on Monday, giving the healthcare group a market capitalisation of RM8.78 billion. The counter has gained over 36% year-to-date.