SINGAPORE (THE BUSINESS TIMES) – Singapore-listed Hospital group IHH Healthcare is selling its medical education arm International Medical University (IMU) for a total enterprise value of RM1.35 billion (S$421 million) to a consortium of investors led by The Rise Fund, TPG's multi-sector global impact investing platform, and the Hong Leong Group.
IHH Healthcare, Asia's biggest hospital group by market value, said on Tuesday (June 7) that it entered into a conditional share sale agreement to dispose of 1.1 million ordinary shares of IMU, representing its entire issued ordinary share capital, to Inbound Education Holdings.
The sale includes a hospital that IMU owns, which is under construction.
Other units in the IMU group of companies include a private medical university, a nursing college, and a dialysis centre.
Hong Leong and The Rise Fund each own approximately 45 per cent of Inbound Education, a private company incorporated in Malaysia in March 2022.
IMU is the largest medical and healthcare-focused higher education institute in Malaysia and its under-construction hospital will be acquired by Columbia Asia as part of the transaction, IHH said.
The transaction is expected to complete by the first quarter of 2023.
IHH said the divestment is a continuation of the group's strategy to drive capital-efficient growth, and will allow it to focus on strengthening healthcare operations in existing markets, as well as extend its footprint into adjacent markets.
IHH chief executive officer and managing director Kelvin Loh said: "This recalibration of our portfolio is a considered decision as part of our new strategy. We will deploy the proceeds to optimise our operations and clinical services plus invest into new growth peaks for IHH."
Of the investment in IMU, TPG senior adviser Ali Redhauddin Tuanku Muhriz said: "This investment is part of a thematic focus globally on professional education in the medical sector and will be a strong addition to the extensive healthcare and education portfolio that TPG has both globally and in Malaysia."
IHH shares ended Tuesday up two cents or 1 per cent at $2.03.