Sunway Berhad has finalised a deal where an affiliate of GIC Pte Ltd Singapore’s sovereign wealth fund, will acquire a 16 percent stake (on a fully converted basis) in Sunway Healthcare Holdings Sdn Bhd (“Sunway Healthcare”) for RM750 million.
Following the review of proposals from several domestic and foreign investment funds, sovereign wealth funds, and private equity firms, the agreement, which values Sunway Healthcare at close to RM4,688 million, was reached on a willing-buyer-willing-seller basis.
As a result of this expansion, Sunway Healthcare is set to become prominently integrated private healthcare group with a network of hospitals and healthcare services in Malaysia and Singapore.
Sunway Group founder and chairman, Tan Sri Jeffrey Cheah during the special announcement said, “This is a significant milestone for Sunway. The overwhelming interest from domestic and international investors is testament to their confidence in the Sunway brand and the track record of our healthcare division in a rapidly growing sector of Malaysia’s economic landscape.”
He added, “After a thorough assessment process, I am delighted to announce the partnership with GIC, a seasoned global healthcare investor. I envision this the Sunway-GIC partnership to boost our ambitions to become a leading integrated private healthcare group in Malaysia and the region.”
GIC has a long history of investing in the healthcare and healthcare-related industries in both public and private markets in the United States, Australia, Brazil, the Philippines, China, and Vietnam.
Choo Yong Cheen, Chief Investment Officer of Private Equity at GIC, said, “We are pleased to support the future growth of Sunway Healthcare, a leading healthcare provider in Malaysia. We are confident in the long-term growth potential of the company given its award-winning operating track record and focus on providing stateof-the-art medical infrastructure.”
Meanwhile, Amit Kunal, Head of Direct Investments Group (Southeast Asia) of Private Equity at GIC, believes that the private healthcare in Malaysia will benefit from trends such as an aging population, the expanding and rising affluence of its middle class as well as a robust healthcare insurance penetration.
Sunway Healthcare’s Managing Director, Lau Beng Long said, “The participation of GIC augurs well to support the expansion of our existing hospitals and the setting up of new hospitals and ancillary healthcare businesses across the country. We look forward to tapping and learning from GIC’s regional healthcare knowledge and experience to further elevate our healthcare services in Malaysia.”
On this partnership transaction, Maybank Investment Bank Bhd served as Sunway’s sole financial advisor.
Next Year, Sunway Healthcare will launch Sunway Sanctuary, which comprises 500 suites for senior living that sit right above Sunway Medical Centre in Sunway City.
In addition, Sunway Healthcare is expanding its operations at its flagship Sunway Medical Centre Sunway City, Selangor, and Sunway Medical Centre Velocity, Kuala Lumpur.
Sunway Healthcare is also building new hospitals in Penang’s Seberang Jaya, Selangor’s Sunway Damansara, Perak’s Sunway City Ipoh, and Kelantan’s Kota Bharu.
Another two hospitals at Sunway City Iskandar Puteri, Johor, and Paya Terubong, Ayer Itam, Penang Island, are in the works.
