TPG to pursue stake in US$500mil Thai fertility hospital


TPG is in talks to buy a stake in a Thai hospital specialising in fertility treatments, according to people with knowledge of the matter.

The owners of Bangkok’s Jetanin Institute for Assisted Reproduction are seeking an outside investor for the business, which could be valued at US$400mil to US$500mil, the people said.

The hospital’s shareholders are open to selling control of the company, though they could also sell a minority stake, one of the people said, asking not to be identified because the process is private.

TPG is stepping up its Asia health-care investments, betting that growing affluence, ageing population and increased availability of medical insurance in the region are turning people to private operators.

A consortium backed by TPG said this week it would acquire control of Fortis Healthcare Ltd’s hospital business, in a deal that creates India’s largest medical facility operator.

Jetanin was founded more than 20 years ago by a group of obstetricians specialising in fertility treatment and a team of scientists specialising in embryonic growth, according to its website.

Listed operators of medical facilities in Thailand, led by Bangkok Dusit Medical Services Pcl and Bumrungrad Hospital Pcl, trade at an average 35 times earnings, according to data compiled by Bloomberg. Discussions on a deal for Jetanin are still ongoing, and negotiations could break down or another buyer could emerge, the people said.

A representative for TPG declined to comment, while a representative at Jetanin’s public relations department said she couldn’t immediately comment.

In 2010, TPG sold its 24% stake in Singapore-based Parkway Holdings Ltd, then Asia’s biggest hospital operator. That transaction returned five times the money TPG invested, a person with knowledge of the matter said at the time.

The US investment firm formed TE Asia Healthcare Partners in 2014, seeking to build a portfolio of specialty clinics and hospitals in Asia. It has oncology centres in Hong Kong, Vietnam and Indonesia and opened the Cardiac Vascular Sentral hospital in Kuala Lumpur at the end of last year.

TPG plans to launch a US$2.5bil health-care fund – which will invest alongside its flagship buyout pool – following its success in the sector, people with knowledge of the matter said this month. — Bloomberg

 

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Business , tpg , thai , hospital

   

Did you find this article insightful?

Yes
No

Next In Business News

Kenanga expects further sales recovery for JHM
Biden's return to Paris pact just a first step for US climate action
UK will submit request to join CPTPP trading bloc soon
Oil price rises on US stimulus hopes, tighter market under Biden
Netflix Stock Soars to All-Time High on Q4 Subscriber Beat, Cash Flow Guidance
Wall Street closes at record highs as earnings jump, Biden inaugurated
Offer of 100 million Public Bank call warrants
Hibiscus unit's two UK licence deals fully executed
Insight - Goldman Sachs highlights bond trading limits
Insight - Yellen-backed policies set to aid risk assets, raise long-term worries

Stories You'll Enjoy