Hong Leong, TPG buy Columbia Asia's hospitals in three countries for RM5bil

KUALA LUMPUR: The Hong Leong Group, led by billionaire Tan Sri Quek Leng Chan and global alternative asset firm TPG have entered into a deal to acquire Columbia Asia Hospitals in South East Asia for US$1.2bil (RM5bil).

The transaction is expected to close by end of this year, the companies said in a joint statement today.

Hong Leong and TPG will buy 17 Columbia Asia Hospitals and 1 clinic located in Malaysia (12 hospitals), Indonesia (3 hospitals) and Vietnam (2 hospitals and 1 clinic).

“We are extremely 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 South East Asia," Hong Leong Group finance director Soon Seong Keat said in the statement.

"We look forward to partnering with TPG, which has a stellar track record as a healthcare investor, and to working closely with Columbia Asia Hospitals’ management team to accelerate its next phase of growth,” Soon said.

The 11 hospitals in India are not part of the deal and will continue to operate with no changes, under the existing ownership of International Columbia US, LLC, which is managed by Seattle-based Columbia Pacific Management.

“As Asia’s healthcare market continues to grow significantly, we see a compelling opportunity for Columbia Asia Hospitals to expand and scale regionally," TPG senior advisor Tunku Ali Redhauddin said.

"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 South East Asia,” he said.

Under the deal, Hong Leong and TPG will acquire 18 healthcare facilities with 1,494 beds across three countries.

"We have nine ongoing projects adding an additional bed capacity of 898 in South East Asia at various stages of development," Columbia Asia Hospitals' group CFO and interim CEO Dilip Kadambi said.

Columbia Pacific Management will continue to hold a minority interest in the business through International Columbia US, LLC.

Morgan Stanley Asia (Singapore) Pte acted as exclusive financial advisor to Columbia Pacific Management on the transaction.