Sunway Group founder and chairman, Tan Sri Jeffrey Cheah commented, “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.”
Sunway Berhad (“Sunway”) has finalized a deal where an affiliate of GIC Pte Ltd (“GIC”), 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.
Tan Sri Jeffrey Cheah added, “After a thorough assessment process, I am delighted to announce the partnership with GIC, a seasoned global healthcare investor. I am confident that the Sunway-GIC partnership will further enhance 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 healthcare and healthcare-related sectors globally with investments across public and private markets in United States, Australia, Brazil, 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 state-of-the-art medical infrastructure.”
Amit Kunal, Head of Direct Investments Group (Southeast Asia) of Private Equity at GIC, said: “We believe 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. In addition, medical tourism is expected to resume after COVID-19-related travel restrictions ease. Malaysia will remain an attractive medical tourist destination due to its good air connectivity and quality medical facilities in this region.
Sunway Healthcare’s Managing Director, Mr. 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.”
With this expansion, Sunway Healthcare is set to become a leading integrated private healthcare group with a network of hospitals and healthcare services in Malaysia and Singapore. Sunway Healthcare currently operates two tertiary hospitals with a combined capacity in excess of 800 beds and more than 400 consultant specialists. The expansion is expected to increase the capacity to approximately 3,000 beds in the next few years.
Source: Business World