IHH Healthcare Acquires Island Hospital in Malaysia for $900 Million
IHH Healthcare, a leading operator of private hospitals in Asia, announced its acquisition of Island Hospital, a prominent private hospital chain in Malaysia, for 3.92 billion ringgit ($900 million) in cash. This acquisition marks the first major move by IHH's new group CEO, Prem Kumar Nair, since taking the helm in October 2023.
The acquisition will significantly strengthen IHH's presence in Penang and solidify its competitive position across Malaysia. Island Hospital is a renowned medical tourism destination, attracting one in three inbound foreign patients to the country. This acquisition will allow IHH to tap into this lucrative market and expand its medical travel offerings.
IHH expects significant synergies from the transaction, exceeding 200 million ringgit over the next five years. The company plans to fund the acquisition through internal funds, subsidiaries, and external borrowing, with completion anticipated by the end of 2024.
Island Hospital, established in 1996, boasts a 600-bed facility in Penang and employs over 80 full-time specialists. The hospital treats 400,000 patients and performs 15,000 surgeries annually. With this acquisition, Island Hospital will become IHH's 18th hospital in Malaysia.
IHH, with a market value of $12.89 billion, is a global healthcare giant operating over 80 hospitals in 10 countries. Citigroup served as the financial advisor to IHH on this deal.