COLUMBIA ASIA OPEN TO POSSIBLE IPO
Hospital chain operator plans to concentrate on markets that it has a presence in for now
AFFORDABLE hospital chain operator Columbia Asia is keeping its options open for a listing.
Speaking at a media briefing, here, yesterday, group chief executive officer Dr Kelvin Loh said although the the listing option is on the table there is no pressing need for it at the moment.
“When it comes to the medical business, capital expenditure is always an ongoing concern, but we are managing just fine even with the large network of hospitals that we have,” he said.
“Extra funding would be beneficial if we plan to venture into other new markets, but for now we are concentrating in the markets that we are in,” he said.
In a Bloomberg report, parent company Columbia Pacific Management was said to be considering selling one of its Asia hospital operators in a deal that could value the business as much as US$2 billion (RM8.41 billion).
Private equity firms and other hospital operators could be targeted as potential buyers in an auction, it added.
When asked, Loh said: “the report was not something that was issued from us, but for now I would prefer to not comment”.
The report said the process could begin early next year and that Columbia Asia had already consulted advisers on the possibility of floating its shares, if the deal were to transpire.
Columbia Asia owns some 30 hospitals and clinics in India, Malaysia, Vietnam and Indonesia. It also boast Japanese corporate giant Mitsui & Co as one of its major investors.
Loh said Columbia Asia received some RM820 million in investment funding earlier this year.
“The bulk of that investment would be channel towards the development of two new hospitals within the short to medium term.
The new hospitals will be in Miri in Sarawak and Batu Kawan in Penang,” he said.
“On top of that, we are expecting to complete the physical hospital building in Tebrau, Johor and to start operations within the first half of next year.