HLFG, TPG SEAL US$1.2B REGIONAL DEAL
Acquisition to involve 12 Columbia Asia hospitals in Malaysia, among others
HONG Leong Financial Group Bhd (HLFG) and private equity firm TPG inked a share purchase agreement to acquire Columbia Asia Hospitals in Southeast Asia for US$1.2 billion (RM5.01 billion) yesterday.
In total, HLFG and TPG will acquire 17 Columbia Asia hospitals with 12 hospitals in Malaysia, three hospitals in Indonesia and two hospitals and a clinic in Vietnam.
The transaction is expected to be completed by year-end.
However, the 11 hospitals in India are not a part of the transaction and will continue to operate with no changes under the existing ownership of International
Columbia United States, LLC, which is managed by Seattle-based Columbia Pacific Management.
“We are excited to be entering the healthcare space and believe Columbia Asia Hospitals, with its current scale and uniquely differentiated business model, offers the right platform to capture the robust healthcare growth in Southeast Asia.
“We look forward to partnering with TPG, which has a stellar track record as a healthcare investor, and to work closely with Columbia Asia Hospitals’ management team to accelerate its next phase of growth,” said HLFG finance director Soon Seong Keat said in a joint statement, here, yesterday.
Columbia Asia Hospitals serves Asia’s rapidly growing middle-income population with a unique business model delivering accessible, affordable and quality healthcare.
TPG senior adviser Tunku Ali Redhauddin said both parties saw a compelling opportunity for Columbia Asia Hospitals to expand and scale regionally as Asia’s healthcare market continued to grow significantly.
“Columbia Asia Hospitals provides affordable and high-quality care in several countries, operating under one cohesive, recognisable brand.
“We are excited by the group’s modern and innovative approach and look forward to working closely with Hong Leong and the hospital’s management team to continue to grow Columbia Asia Hospitals’ footprint across Southeast Asia,” he said.
Columbia Pacific Management (CPM) managing director Nate McLemore said Columbia Asia Hospitals’ business model would only benefit with Hong Leong and TPG’s market expertise, business insights and overall management capabilities.
CPM will continue to hold a minority interest in Columbia Asia Hospitals through International Columbia US LLC.
Columbia Asia Hospitals group chief financial officer Dilip Kadambi said the healthcare provider had been serving the community for 20 years by building and operating 18 healthcare facilities with 1,494 beds in three countries in the region.
Kadambi said the company’s nine ongoing projects would add an additional bed capacity of 898 at various stages of development.