Hong Leong Group and TPG File Prospectus for $1.2 Billion Acquisition of 17 Columbia Asia Hospitals

On September 16, 2019, VCBeat (WeChat ID: vcbeat) learned from foreign media reports that Hong Leong Group and the private equity firm TPG had signed a share purchase agreement to acquire 17 Columbia Asia hospitals for $1.2 billion. Morgan Stanley Asia (Singapore) Pte. Ltd. served as the exclusive financial advisor for the transaction.

Hong Leong Bank and TPG will jointly acquire 17 Columbia Asia hospitals, including 12 hospitals in Malaysia, three in Indonesia, two in Vietnam, and one clinic. The transaction is expected to be completed by the end of 2019.

Columbia Asia began operations in 1996. Currently, it operates 29 healthcare facilities across Asia: 12 in Malaysia, 11 in India, three in Vietnam, and three in Indonesia. By establishing mid-sized hospitals in residential areas, the company enhances the accessibility and efficiency of medical services to better serve various communities.

TPG Senior Advisor Tunku Ali Redhauddin stated, “As the Asian healthcare market continues to grow, Columbia Asia Hospitals have excellent opportunities for regional expansion and business development. Columbia Asia provides affordable, high-quality care across multiple countries. We are excited about the Group’s modern and innovative approach and look forward to working closely with Hong Leong Bank and the hospital management team to further expand Columbia Asia’s footprint in Southeast Asia.”

Nate McLemore, Managing Director of CPM, stated: “Columbia Asia Hospitals’ business model, which targets the growing middle-class population, is highly scalable. Leveraging the market expertise, business insights, and overall management capabilities of Hong Leong Bank and TPG, Columbia’s business model can be further refined. We are proud of Columbia Asia Hospitals and look forward to collaborating with these two world-class investment organizations to continue developing and expanding the Columbia Asia platform.”

Hong Leong Group, founded in 1963, is Singapore’s largest real estate and hospitality investment developer and benchmark enterprise. It is also a global conglomerate with diversified operations spanning real estate, banking and financial services, and hotels. The Group’s shares are listed on stock exchanges in multiple countries, including the United States, the United Kingdom, and Singapore.

TPG Capital is one of the world’s largest private equity investment firms, currently managing over $50 billion in assets through a series of private equity funds under its umbrella. According to Private Equity International (PEI) magazine, TPG was ranked as the largest private equity firm globally in both 2011 and 2012.

(Compiled by Tian Shuhang)