THE consolidation and merger of several healthcare assets under US private equity firm TPG Capital and its partner, the Hong Leong Group, is believed to have obtained the green light from market regulator.

It is learnt that following the approval, the parties involved are finalising details of the new entity. According to The Health newspaper, an announcement is expected to be made soon. 

The new mega entity will see Columbia Asia Healthcare, Ramsay Sime Darby Health Care, Beacon Hospital, Cardiac Vascular Sentral Kuala Lumpur (CVSKL), ALTY Orthopaedic Hospital and PJ Integrated Centre of Advanced Surgery and Oncology (Picaso) coming under one umbrella.

It is estimated the new company could be listed in 2026 on Bursa Malaysia at a valuation of more than RM20 bil, making it one of the largest listed healthcare groups on the local bourse. It will include healthcare facilities in Malaysia, Indonesia, and Vietnam.

Recall that that the Hong Leong Group and TPG acquired Columbia Asia’s hospitals in Southeast Asia in 2019 for US$1.2 bil. The purchase encompassed hospitals in Malaysia, Indonesia and Vietnam but not those in India. Tycoon Tan Sri Quek Leng Chan controls the Hong Leong Group.

In November 2023, Columbia Asia Healthcare acquired Ramsay Sime Darby Health Care (RSDH) for RM5.7 bil from Sime Darby Bhd and Ramsay Healthcare Ltd of Australia. RSDH operates four hospitals in Malaysia and three in Indonesia.

For the record, TPG had in 2020 mulled privatising KPJ Healthcare Bhd jointly with the latter’s largest shareholder, Johor Corp, but that did not happen.

It is learnt that TPG was also recently eyeing the Island Hospital Group in Malaysia but it is now likely that Sunway Healthcare which has ambitious healthcare plans, is interested in acquiring it. The deal could be valued at RM3.5 bil.

There is also speculation that Sunway Healthcare could bring forward its listing as early as next year from 2027 as initially planned. The listing could see a valuation of up to RM12 bil. - June 19, 2024

https://focusmalaysia.my/source-malaysias-mega-healthcare-merger-gets-the-nod-rm20b-listing-on-the-cards/