IHH, Sunway among bidders for Affinity's Malaysian hospital, sources say

Ramsay Health Care

20/06/2024 10:36

By Yantoultra Ngui
       SINGAPORE, June 20 (Reuters) - Private hospital
operators IHH Healthcare  IHHH.KL  and Sunway Medical Centre are
among bidders for Malaysia's Island Hospital, which is owned by
Asian buyout fund Affinity Equity Partners and could fetch $1
billion, two sources with knowledge of the matter said. 
    Non-binding bids were due June 11, the sources said.
    Private equity firms CVC Capital Partners and TPG Capital
also submitted initial bids, one of the sources said.
    Affinity will shortlist bidders for a next round and expects
to conclude the sale by year-end, one of the sources said. 
    Both sources asked not to be identified because the process
and discussions are not public. 
    Affinity and Island Hospital did not respond to requests
seeking comment. 
    IHH, which is listed on the Malaysian and Singaporean
bourses, said it does not comment on market speculation and will
update the market if there are any material developments. 
    Selangor-based Sunway Medical, CVC and TPG declined to
comment.
    Southeast Asian healthcare assets are gaining favour as
investors bet on the region's growing affluent and aging
population and the sector's ability to weather the current
challenging economic environment.
    In November, Australia's Ramsay Health Care  RHC.AX  and
Malaysian conglomerate Sime Darby  SIME.KL  agreed to sell their
stakes in their hospital joint venture, Ramsay Sime Darby Health
Care, to Columbia Asia Healthcare for 5.7 billion ringgit 
($1.21 billion). 
    Founded in 1996, Island Hospital is a 600-bed hospital in
Penang, Malaysia, with over 80 full-time specialists, according
to its website. Annually, it treats 400,000 patients and
performed 15,000 surgeries. 
    Hong Kong-based Affinity bought the hospital in June 2015,
according to its website. No transaction amount was disclosed.
    Affinity, which manages assets and funds totalling $14
billion, invests mainly in Korea, Australia, New Zealand,
Greater China and Southeast Asia, according to its website.
    ($1 = 4.7080 ringgit)

 (Reporting by Yantoultra Ngui; editing by Kane Wu and Jason
Neely)
 ((Yantoultra.Ngui@thomsonreuters.com;))