CVC Capital Partners has reached an agreement with Indonesia’s Lippo Karawaci to acquire a 10.4% interest in Siloam International Hospitals for 3.86 trillion IDR ($240 million).
Lippo Karawaci said in a filing that it will sell more than 1.35 million shares to Singapore-domiciled Sight Investment Company Pte Ltd.
DealStreetAsia has independently verified that Sight Investment Company is a vehicle managed by CVC Capital Partners.
Last week, DealStreetAsia reported that a CVC-led consortium, which includes Singapore’s GIC and Temasek, will acquire a 65% stake in Siloam International Hospitals for around $1.6 billion.
Lippo Karawaci, which owns a 49.57% stake in the hospital chain through its subsidiary PT Megapratama Karya Persada, will sell 29% shares to the consortium. CVC Capital is an existing shareholder in the asset with a 26.18% stake.
CVC’s new fund will also buy the Siloam shares from its old vehicle.
Lippo Karawaci said in its filing that the tentative sale of Siloam International Hospitals will bring a positive impact on its balance sheet and increase its cash.
Siloam Hospitals is one the largest private hospital network in Indonesia with over 41 branches and 25 clinics. During the first quarter of 2024, the hospital chain reported a lower net profit of 13.67 billion rupiah compared to 250 billion rupiah in the same period last year on account of a surge in provision for impairment loss on assets. Siloam Hospitals’s revenue increased by 14% to 3 trillion rupiah in Q1 2024.
In the healthcare sector in Indonesia, CVC Capital also invested in pharmaceutical distributor SOHO Global Health.
The private equity group’s other Asia healthcare investments include Vietnam-based Phuong Chau Group, Indian cancer care provider Healthcare Global, Japan’s pharmacy chain and hospital outsourcing service business Sogo Medical Group, and Chinese pharmacy chain Xi’an Yikang.
Earlier this year, the firm closed its sixth Asia fund at $6.8 billion.
SE Asia’s hospital assets have been seeing a spate of private equity deal activity.
DealStreetAsia also reported last week that the sale process of Malaysia’s Island Hospital, owned by Hong Kong-based buyout firm Affinity Equity Partners, is drawing interest from multiple Southeast Asian healthcare groups such as Malaysian private healthcare group IHH Healthcare and Singapore-based Health Management International.
