Malaysia-listed IHH Healthcare, a leading private hospital operator in Asia, announced on Wednesday that it has acquired Island Hospital from Affinity Equity Partners for a total cash equity consideration of 3.92 million ringgit ($896 million).
DealStreetAsia had reported in May that the Malaysian private healthcare group was one of the contenders that had expressed interest in the 600-bed hospital based in Penang.
IHH is one of the largest private healthcare providers in Malaysia, with a network currently comprising 11 Pantai Hospitals, 4 Gleneagles Hospitals, as well as Prince Court Medical Centre and Timberland Medical Centre.
Island Hospital will become the 18th hospital in the IHH Malaysia network pending the completion of the acquisition, which is expected by the end of 2024.
Citigroup Global Markets Singapore Pte. Ltd is the sole financial advisor to IHH on this transaction.
“We expect significant synergies from the transaction and a unique opportunity to elevate Island Hospital as a leading integrated medical facility in Asia. In keeping with our ‘ACE’ framework, we will continue to drive sustainable growth in Malaysia and across our global network to deliver value for our stakeholders,” said Dr Prem Kumar Nair, Group Chief Executive Officer, IHH Healthcare in a company statement.
In the five years following the acquisition, IHH expects to achieve synergies of over 200 million ringgit.
In addition to holding a landbank worth 223.4 million ringgit, Island Hospital has secured approvals for future development. This will enable IHH to future-proof its growth in the region and meet the growing healthcare demand from both local as well as foreign patients.
Established in 1996, Island Hospital currently has nearly 119 resident and visiting specialists across nine centres of Excellence (COE) and is known for its comprehensive medical services and high-quality patient and clinical care.
IHH’s second largest cluster in Malaysia will be strengthened by adding Island Hospital, Penang’s largest private hospital. Post acquisition, IHH will have more than 1,000 operational beds in Penang.
Furthermore, the group gains a greater share of medical travel into Malaysia, enhancing its support for medical tourism.
Island Hospital is the leading hospital for medical tourism, attracting approximately 1 in 3 inbound foreign patients to Malaysia, supported by a well-established ecosystem built over three decades and its strong brand name.
