Jentayu Sustainables exits healthcare with US$414,000 sale of Ohana Hospital unit

MALAYSIA—Jentayu Sustainables Bhd has announced its complete exit from the healthcare sector after agreeing to sell its entire stake in Ultimate Forte Sdn Bhd (UFSB), the operator of Ohana Specialist Hospital in Kuala Lumpur, to Lourdes Medical Centre for RM1.75 million (US$414,000).

The move marks a significant strategic shift as the company sharpens its focus on expanding its renewable energy portfolio.

Ohana Specialist Hospital is a 30-bed private facility that specializes in paediatrics as well as obstetrics and gynaecology.

Jentayu said the disposal forms part of its long-term plan to streamline operations and concentrate resources on its core clean energy business.

The company first ventured into healthcare in 2021 when it was still known as Ipmuda Bhd.

At the time, it proposed a rights issue to finance investments in both renewable energy and healthcare.

It later completed the acquisition of UFSB in February 2022 for RM18 million (US$4.26 million) as part of its diversification strategy.

Financial performance influenced decision

The healthcare business has struggled financially in recent years.

For the financial year ended June 30, 2025, UFSB recorded a net loss of RM2.05 million (US$485,000) and reported net liabilities of RM7.22 million (US$1.71 million).

As part of the transaction, Jentayu will also assume RM1.18 million (US$279,000) in liabilities owed to UFSB’s creditors up to April 20, 2026.

Despite taking on these obligations, the company expects to recognize a gain of approximately RM2.37 million (US$561,000) from the disposal after accounting for the subsidiary’s net liabilities.

Lourdes Medical Centre, which is wholly owned by Rayyan Medical Services Sdn Bhd, officially assumed responsibility for the hospital’s management and operations on April 20, 2026.

Its sole director, Datuk Muhammad Rayyan Abdullah, also serves as a director of UFSB.

However, Jentayu clarified that the disposal does not constitute a related-party transaction and does not require shareholder approval.

Hospital faced operational setbacks

Jentayu’s healthcare venture encountered several operational challenges during its ownership of the hospital.

Slightly more than a year after acquiring the facility, the Ministry of Health revoked Ohana Specialist Hospital’s operating licence because of non-compliance with regulatory requirements.

The hospital remained closed for more than two months before the licence was later reinstated after management introduced stronger governance measures and operational improvements.

Although healthcare generated about 57% of the group’s revenue during the first quarter ended March 31, 2025, the segment also contributed nearly 29% of the company’s quarterly net loss of RM4.19 million (US$992,000).

Those results highlighted the financial strain the business placed on the broader group.

Renewable energy becomes top priority

The divestment aligns with Jentayu’s broader restructuring efforts as it channels more capital into renewable energy projects, particularly its hydropower developments in Sabah.

The company has continued to raise funds and reorganize its business to support these long-term investments while reducing exposure to non-core operations.

Recent corporate announcements also include financing initiatives for its Oriole Hydro project, underscoring management’s commitment to expanding its clean energy portfolio.

Market analysts have identified the disposal as one of the key corporate developments influencing investor attention this week, describing it as part of Jentayu’s ongoing transformation into a renewable energy-focused company.

Jentayu’s shares closed unchanged at 25.5 sen on Friday, giving the company a market capitalization of approximately RM138.8 million (US$32.9 million).

The stock has declined 13.56% since the beginning of the year.