IHH Healthcare to Acquire Malaysia Hospital — Update

By P.R. Venkat and Amanda Lee

IHH Healthcare has agreed to buy a Malaysian hospital business, the latest in a series of healthcare deals in the Southeast Asian region.

IHH said it will buy Penang-based Island Hospital for 3.92 billion ringgit, equivalent to $897.5 million, from Comprehensive Care, a unit of Affinity Equity Partners. The acquisition will also include land around the hospital.

Island Hospital and its subsidiaries' net debt as of end June is estimated to be 276.3 million ringgit, it added.

"We are immensely proud of what we have achieved with Island Hospital. Island Hospital's evolution into a leading healthcare institution that positively impacts the community, stakeholders, and serves as a beacon of medical excellence in Malaysia and beyond," said Tang Kok Yew Founding Chairman and Managing Partner of Affinity Equity Partners.

IHH--one of Asia's largest private healthcare group--plans to fund the acquisition with internal resources and external borrowings, it said.

The Wall Street Journal earlier reported on the possible deal.

With this deal, IHH will be able to increase its presence in Malaysia and contribute to its network of 17 hospitals and 2,822 operational beds. The company operates one of the world's largest healthcare networks, with over 80 hospitals in 10 countries, including China, India and the Netherlands.

Write to P.R. Venkat at venkat.pr@wsj.com

(END) Dow Jones Newswires

September 04, 2024 07:15 ET (11:15 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.