o The transaction values Sunway Healthcare at RM4,688 million.
o GIC’s FDI confirms Sunway’s confidence in the growth of its healthcare business and the long-term potential of the Malaysian healthcare industry.
Sunway Berhad (“Sunway”) has entered into a deal whereby a subsidiary of GIC Pte Ltd (“GIC”), Singapore’s sovereign wealth fund, acquires a 16 percent stake (on a fully converted basis) in Sunway Healthcare Holdings Sdn Bhd (“Sunway Healthcare “) For 750 million RM.
The agreement, valued by Sunway Healthcare at nearly RM4,688 million, was reached on the basis of willing buyers-willing sellers after evaluating proposals from various domestic and foreign mutual funds, sovereign wealth funds and private equity firms.
Sunway Group Founder and Chairman Tan Sri Jeffrey Cheah commented, “This is a significant milestone for Sunway. The overwhelming interest of national and international investors testifies to their trust in the Sunway brand and the track record of our healthcare division in a rapidly growing sector of the Malaysian economic landscape. “
Tan Sri Jeffrey Cheah added, “After a thorough evaluation process, I am pleased to announce the partnership with GIC, an experienced global healthcare investor. I am confident that the partnership between Sunway and GIC will further increase the value of Sunway Healthcare and that together we can realize the full potential of our healthcare business. “
GIC has an established track record in the healthcare and health-related sectors worldwide, with investments in public and private markets in the US, Australia, Brazil, the Philippines, China and Vietnam.
Choo Yong Cheen, GIC’s Chief Investment Officer of Private Equity, said, “We are excited to support the future growth of Sunway Healthcare, a leading healthcare provider in Malaysia. We believe in the company’s long-term growth potential due to its award-winning track record and focus on providing state-of-the-art medical infrastructure. “
Amit Kunal, Head of Direct Investments Group (Southeast Asia) of Private Equity at GIC, said, “We believe that Malaysia’s private health care system is driven by trends such as an aging population, growing and rising middle class wealth and a solid penetration of health insurance . In addition, medical tourism is expected to resume after travel restrictions related to Covid-19 are relaxed. Malaysia will remain an attractive medical tourist destination in the region due to its good air connections and high quality medical facilities.
Sunway Healthcare Managing Director Mr. Lau Beng Long said, “GIC’s involvement bodes well in supporting the expansion of our existing hospitals and the creation of new hospitals and complementary healthcare companies across the country. We look forward to leveraging and learning GIC’s regional healthcare knowledge and experience to further improve our healthcare services in Malaysia. ”
With this expansion, Sunway Healthcare will become a leading integrated private health group with a network of hospitals and health services in Malaysia and Singapore. Sunway Healthcare currently operates two tertiary hospitals with a total capacity of over 800 beds and more than 400 specialists. The expansion should increase the capacity to around 3,000 beds in the next few years.
Sunway Healthcare also operates complementary healthcare companies, namely the Sunway Specialist Center Damansara, the Sunway Medical Center Singapore, the Sunway Traditional and Complementary Medicine Center, and Home Care. Next year, Sunway Healthcare will open the Sunway Sanctuary, which includes 500 suites for seniors who are located directly above the Sunway Medical Center in Sunway City.
In addition, Sunway Healthcare is expanding its flagship Sunway Medical Center Sunway City, Selangor, and Sunway Medical Center Velocity, Kuala Lumpur. Sunway Healthcare is also developing new hospitals in Seberang Jaya, Penang; Sunway Damansara in Selangor; Sunway City Ipoh in Perak; Kota Bharu in Kelantan. Two more hospitals in Sunway City, Iskandar Puteri, Johor and Paya Terubong, Ayer Itam on the island of Penang, are also in the pipeline.
Maybank Investment Bank Bhd acted as sole financial advisor to Sunway on this transaction.
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Translations
Tan Sri Dr. Jeffrey Cheah, Founder and chairman of the Sunway Group
Tan SriDr. Xie Funian, Chairman and Founder of the Sunway Group
Tan Sri Dr. Jeffrey Cheah, Founder and chairman of the Sunway Group
Lau Beng Long, Managing Director of Sunway Healthcare
Liu Minglong, managing Director, Sunway Medical Group
Lau Beng Long, Managing Director, Sunway Medical Group
Choo Yong Cheen, Chief Investment Officer, Private Equity, GIC
Zhu Yongqin, Chief Private Equity Investment Officer, GIC
Choo Yong Cheen, Chief Private Equity Investment Officer, GIC
Amit Kunal, Head of Direct Investment Group (Southeast Asia), Private Equity, GIC
Amit Kunal, Head of Direct Investment in Southeast Asia, GIC
Amit Kunal, Head of Private Equity Direct Investment Group (Southeast Asia), GIC
About the Sunway Group
The Sunway Group, founded in 1974, one of the largest conglomerates in Malaysia, has developed into an innovation supplier through the Sunway Living Laboratory. The group – with core interests in real estate, construction, education and healthcare based on a unique build-own-operate business model – plans for the future with the Sunway Living Lab, which brings together researchers, experts and universities to create real World solutions to improve the environment and humanity.
Our 16,000-strong team in 50 locations worldwide is committed to transformative growth and sustainable progress in our 13 businesses, namely Real Estate, Construction, Retail, Hospitality, Leisure, Healthcare, Education, Commerce and Manufacturing, Building Materials and Real Estate Investment Trust (REIT) .
We are also committed to the 17 United Nations Sustainable Development Goals and continue to align our business strategies to drive economic and social progress while minimizing our environmental impact. More information is available at www.sunway.com.my
About GIC
GIC is a leading global investment firm founded in 1981 to manage Singapore’s foreign exchange reserves. As a disciplined long-term value investor, GIC is uniquely positioned to invest in a variety of asset classes including stocks, fixed income, private equity, real estate and infrastructure. In private equity, GIC invests both through funds and directly in companies and works with its fund managers and management teams to help world-class companies achieve their goals. GIC has investments in over 40 countries and has invested in emerging markets for more than two decades. GIC is headquartered in Singapore and employs over 1,700 people in 10 offices in major financial cities around the world.
Important NOTE
Please read this media release in conjunction with the announcement to Bursa Malaysia for a fuller understanding of Sunway Berhad.
This media release may contain certain forward-looking statements due to a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industrial and economic conditions; Interest rate trends; Cost of capital and availability of capital, including the availability of funding in the amount and terms necessary to support future business; Availability of real estate; Competition from other companies; Changes in business expenses, including wages, employee benefits and training, real estate expenses, changes in government and public order. You are cautioned not to place undue reliance on these forward-looking statements, which are based on management’s current assessment of future events. Past performance is not necessarily an indication of future performance.
For media inquiries, please contact:
Ernest Chua, Corporate Communications, Sunway Group
013-397 2758, ernestcet@sunway.com.my
Lee Shaowen, Corporate Communications, Sunway Group
012-213 5015, lees@sunway.com.my
Mah Lay Choon, Corporate Communications, GIC
+65 98389425, mahlaychoon@gic.com.sg
source https://dailyhealthynews.ca/gic-invests-rm750-million-in-sunway-healthcare-press-releases-asia/
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