Financial Statements Notes to the Financial Statements 20. TRADE AND OTHER PAYABLES (continued) Liabilities on put options granted to non-controlling interests (a) Pursuant to the acquisition of City Hospitals and Clinics AD (“City Clinic”), the Group granted put options to non-controlling interests of Acibadem City Clinic B.V. (“ACC BV”), who were formerly shareholders of City Clinic, to sell their shares in ACC BV, to the Group at the higher of the prevailing market price or an amount determined by the formula prescribed in the agreement. These put options are exercisable from June 2027 to May 2032. As at 31 December 2024, this put option has a carrying value of RM200 million (2023: RM167 million). (b) Pursuant to a shareholders’ agreement and exit agreement entered into by Agilus, Fortis and certain non-controlling interests of Agilus (“Agilus minority shareholders”), Fortis granted a cash put option to the Agilus minority shareholders to sell their shares in Agilus to Fortis upon the occurrence of certain trigger event as stated in the exit agreement. On 30 March 2022, Agilus, Fortis and the Agilus minority shareholders signed an amendment agreement to incorporate new proposed exit rights for the Agilus minority shareholders, and to also simultaneously terminate the existing exit agreement. Accordingly, the Agilus minority shareholders have agreed not to exercise the cash put option for a further period of 36 months from 5 February 2021. On 20 December 2024, one of the Agilus minority shareholders exercised its put option (refer to note 37). As at 31 December 2024, this put option has a remaining carrying value of RM713 million (2023: RM817 million). On 17 January 2025, the remaining Agilus minority shareholders exercised their put option (refer to note 42). (c) Pursuant to the acquisition of General Hospital Acibadem Bel Medic (formerly known as Opsta Bolnica Bel Medic (Bel Medic General Hospital)) (“Bel Medic”), the Group granted put options to non-controlling interests of Bel Medic to sell their shares in Bel Medic to the Group at an amount determined by the formula prescribed in the shareholders’ agreement. These put options are exercisable between July 2026 and July 2029, unless expedited upon the occurrence of a certain event from July 2024. If expedited, the put options can be exercised at a prescribed discount. As at 31 December 2023, this put option has a carrying value of RM48 million. On 20 September 2024, the above mentioned put option lapsed following the acquisition of non-controlling interests by the Group (refer to note 37). During the year, change in value of liabilities on put options granted to non-controlling interests of RM258 million debit (2023: RM438 million credit) was recognised in equity. Provision for loan taken by a joint venture In 2013, Khubchandani Hospitals Private Limited (“KHPL”), a 50% owned joint venture, was granted a term loan facility to fund the construction and pre-operating costs of its hospital. A wholly owned subsidiary of the Group, Parkway Holdings Limited (“PHL”), is a joint sponsor under the Sponsor Support Agreement for the term loan facility where the sponsors are required to provide for any shortfall payable by KHPL in the event of termination or non-completion of the hospital project. On 5 January 2017, the bank served a notice to KHPL that the hospital project was unlikely to be completed. In view that KHPL is unlikely to be able to repay the loan, the Group made a provision for its 50% share of the amounts that KHPL owes the licensed bank. As at 31 December 2024, the Group had fully repaid its share of the amounts that KHPL owed the licensed bank. IHH Healthcare Berhad | Annual Report 2024 174
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