Hong Leong, TPG Agree on Hospital Deal
Malaysian conglomerate Hong Leong and U.S. private equity firm TPG Capital have agreed to buy $1.2 billion worth of hospitals in Southeast Asia.
The deal will see the duo buy 17 hospitals and one clinic in Malaysia, Indonesia and Vietnam from investment firm Columbia Asia, according to a statement. The two buyers will each own 50 percent of the newly acquired assets.
According to media reports, Columba Asia was seeking up to $2 billion from the sale. The deal does not include the firm's 11 hospitals in India, which are expected to close by 2019-end.
Healthcare Boom
The deal marks Hong Leong’s entry into the healthcare sector which continues to boom in the region. According to a Bain & Co. report, healthcare buyouts in Asia Pacific totaled $15.8 billion in 2018, a more than 180 percent year-on-year increase.
Meanwhile, the sector is no unfamiliar grounds for TPG which in July sold private Chinese healthcare operator United Family Healthcare for $1.3 billion. In the same month, it was also part of a deal to buy Australian hospital owner Healthscope for $1.7 billion.
