o The transaction values ââSunway Healthcare at RM 4,688 million.
o Foreign direct investment by GIC validates Sunway’s confidence in the growth of its healthcare division and the long-term potential of Malaysia’s healthcare industry.
Sunway Berhad (“Sunway”) has finalized an agreement whereby a subsidiary of GIC Pte Ltd (“GIC”), the sovereign wealth fund of Singapore, will acquire a 16% stake (on a fully converted basis) in Sunway Healthcare Holdings Sdn Bhd (“Sunway Healthcare”) for 750 million RM.
The deal, which values ââSunway Healthcare at nearly RM4688 million, was concluded on the basis of a willing buyer and a willing seller after evaluating proposals from various domestic and international investment funds, sovereign wealth funds. and private equity firms.
Sunway Group Founder and Chairman Tan Sri Jeffrey Cheah said, âThis is an important milestone for Sunway. The overwhelming interest from domestic and international investors is a testament to their confidence in the Sunway brand and our healthcare division’s track record in a rapidly growing sector of Malaysia’s economic landscape.
Tan Sri Jeffrey Cheah added, âAfter a thorough evaluation process, I am delighted to announce the partnership with GIC, a seasoned global investor in health. I am confident that the Sunway-GIC partnership will further increase the value of Sunway Healthcare and that together we can realize the full potential of our healthcare business.
GIC has established experience in the healthcare and healthcare industries globally with investments in public and private markets in the United States, Australia, Brazil, Philippines, China and Vietnam.
Choo Yong Cheen, Director of Private Equity Investments at GIC, said, âWe are delighted to support the future growth of Sunway Healthcare, one of the leading healthcare providers in Malaysia. We are confident in the company’s long-term growth potential given its award-winning operating history and focus on providing state-of-the-art medical infrastructure.
Amit Kunal, Head of Private Equity (Southeast Asia) Direct Investment Group at GIC, said: High penetration of health insurance. In addition, medical tourism is expected to pick up after the relaxation of travel restrictions linked to Covid-19. Malaysia will remain an attractive medical tourism destination due to its good air connectivity and quality medical facilities in this region.
Sunway Healthcare General Manager Mr. Lau Beng Long said, âGIC’s participation bodes well for supporting the expansion of our existing hospitals and the establishment of new hospitals and ancillary healthcare businesses in across the country. We look forward to harnessing and learning from GIC’s regional healthcare knowledge and experience to further elevate our healthcare services in Malaysia.
With this expansion, Sunway Healthcare is poised 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 of over 800 beds and over 400 specialist consultants. The expansion is expected to bring the capacity to approximately 3,000 beds over the next few years.
Sunway Healthcare also operates ancillary healthcare business, namely Sunway Specialist Center Damansara, Sunway Medical Center Singapore, Sunway Traditional and Complementary Medicine Center as well as home care. Next year, Sunway Healthcare will launch Sunway Sanctuary, which includes 500 senior suites located directly above Sunway Medical Center in Sunway City.
In addition, Sunway Healthcare is expanding its operations at 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 Bahru in Kelantan. In addition, two more hospitals are in preparation in Sunway City Iskandar Puteri, Johor and Paya Terubong, Ayer Itam on Penang Island.
Maybank Investment Bank Bhd acted as sole financial advisor to Sunway in this transaction.
Tan Sri Dr Jeffrey Cheah, founder and chairman of the Sunway group
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Tan Sri Dr Jeffrey Cheah, Pengasas dan Pengerusi Kumpulan Sunway
Lau Beng Long, Managing Director of Sunway Healthcare
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Lau Beng Long, Pengarah Urusan, Kumpulan Perubatan Sunway
Choo Yong Cheen, Chief Investment Officer, Private Equity, GIC
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Choo Yong Cheen, Ketua Pegawai Pelaburan Ekuiti Persendirian, GIC
Amit Kunal, Head of Direct Investments Group (South-East Asia), Private Equity, GIC
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Amit Kunal, Ketua Kumpulan Pelaburan Langsung Ekuiti Persendirian (Asia Tenggara), GIC
About the Sunway Group
Founded in 1974, Sunway Group, one of Malaysia’s largest conglomerates, has grown into a provider of innovation through the Sunway Living Laboratory. The Group – with core interests in real estate, construction, education and healthcare, operating on a unique build-operate business model – also looks to the future with the Sunway Living Lab bringing together researchers, experts and academics to generate real global solutions for the improvement of the environment and humanity.
Our team of 16,000 people at 50 locations around the world are committed to driving transformative growth and sustainable progress across our 13 business divisions, namely real estate, construction, retail, hospitality , recreation, health, 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 with promoting economic and social progress while minimizing environmental impact. For more information visit www.sunway.com.my
GIC is a leading global investment firm established in 1981 to manage Singapore’s foreign exchange reserves. A disciplined investor focused on long-term value, GIC is uniquely positioned to invest in a wide range of asset classes including equities, fixed income, private equity, real estate and infrastructure. In private equity, GIC invests through funds as well as directly in companies, in partnership with its fund managers and management teams to help world-class companies achieve their goals. GIC has investments in over 40 countries and has been investing in emerging markets for over two decades. Headquartered in Singapore, GIC employs more than 1,700 people in 10 offices in major financial cities around the world.
Please read this press release in conjunction with the announcement posted at Bursa Malaysia for a more complete understanding of Sunway Berhad.
This press 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 industry and economic conditions; interest rate trends; the cost of capital and the availability of capital, including the availability of finance in the amounts and conditions necessary to support future activities; availability of real estate; competition from other companies; changes in operating expenses, including employee salaries, benefits and training, real estate expenses, changes in government and public policy. You are cautioned not to place undue reliance on these forward-looking statements which are based on management’s current view of future events. Past performance is not necessarily a guarantee of future performance.
For media inquiries, please contact:
Ernest Chua, Corporate Communications, Sunway Group
013-397 2758, [email protected]
Lee Shaowen, Corporate Communications, Sunway Group
012-213 5015, [email protected]
Mah Lay Choon, Corporate Communications, GIC
+65 98389425, [email protected]