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By Shivangi Lahiri and Yantoultra Ngui
London: IHH Healthcare of Malaysiaan operator of private hospitals in Asia, said on Wednesday it is acquiring local private hospital chain Island Hospital, in a deal that values the latter at 3.92 billion ringgit ($901.15 million) in cash.
Reuters reported in June that IHH and Sunway Medical Centre Asian buyout funds were also among the bidders for the Penang-based hospital Affinity Equity Partners Purchased in June 2015.
“The proposed acquisition will enable IHH to consolidate its presence in Penang and strengthen its competitive position across Malaysia,” the company said in a filing to the stock exchange.
This is the first acquisition made by IHH’s group chief executive officer Prem Kumar Nair after he took charge of the medical group in October.
Nair, a physician and healthcare executive with more than three decades of experience in the sector, told Reuters in December in his first media interview since taking the helm of IHH that the company was exploring acquisitions in Indonesia and Vietnam.
“We Significant synergies expected “The company has suffered significant losses due to this deal,” Nair said in a separate statement.
IHH, which is listed on the Malaysian and Singapore Stock ExchangeHe said he expects synergies of more than 200 million ringgit over the next five years following the acquisition.
IHH said it will also benefit from this The bulk of medical visits In Malaysia, Island Hospital is the leading hospital for medical tourism, attracting one in three foreign patients visiting Malaysia.
Proposed Acquisition of Island Hospital The project will be funded through internal funds and those from its subsidiaries and external borrowings, and is expected to be completed by the end of 2024, IHH said in the filing.
Established in 1996, Island Hospital is a 600-bed hospital in Penang, Malaysia with over 80 hospital beds. Full-time specialistAccording to its website, it treats 400,000 patients and performs 15,000 surgeries each year.
According to IHH, Island Hospital will become IHH’s 18th hospital in Malaysia.
IHH, which has a market value of $12.89 billion according to LSEG data, is one of the world’s largest private healthcare firms with more than 80 hospitals in 10 countries, according to its website.
Its hospital brands include Acibadem and Gleneagles.
Citigroup is IHH Financial Advisor on this deal.
($1 = 4.3500 ringgit) (Reporting by Shivangi Lahiri in Bengaluru and Yantaultra Ngui in Singapore; Editing by Shreya Biswas and Kim Coghill)
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