SINGAPORE/HONG KONG: US private equity firm TPG is in talks to buy a stake in a Thai hospital specialising in fertility treatments, according to people with knowledge of the matter.
The owners of Bangkok’s Jetanin Institute for Assisted Reproduction are seeking an outside investor for the business, which could be valued at $400 million to $500 million, the people said.
The hospital’s shareholders are open to selling control of the company, though they could also sell a minority stake, one of the people said, asking not to be identified because the process is private.
TPG is stepping up its Asia healthcare investments, betting that growing affluence, ageing population and increased availability of medical insurance in the region are turning people to private operators. A consortium backed by TPG said this week it will acquire control of Fortis Healthcare Ltd’s hospital business, in a deal that creates India’s largest medical facility operator.
Jetanin was founded more than 20 years ago by a group of obstetricians specialising in fertility treatment and a team of scientists specializing in embryonic growth, according to its website.
Listed operators of medical facilities in Thailand, led by Bangkok Dusit Medical Services Plc and Bumrungrad Hospital Plc, trade at an average 35 times earnings, according to data compiled by Bloomberg.
Discussions on a deal for Jetanin are still ongoing, and negotiations could break down or another buyer could emerge, the people said.
A representative for TPG declined to comment, while a representative at Jetanin’s public relations department said she couldn’t immediately comment.
In 2010, TPG sold its 24% stake in Singapore-based Parkway Holdings Ltd., then Asia’s biggest hospital operator. That transaction returned five times the money TPG invested, a person with knowledge of the matter said at the time.
The US investment firm formed TE Asia Healthcare Partners in 2014, seeking to build a portfolio of specialty clinics and hospitals in Asia.
It currently has oncology centres in Hong Kong, Vietnam and Indonesia and opened the Cardiac Vascular Sentral hospital in Kuala Lumpur at the end of last year.
TPG plans to launch a $2.5 billion health-care fund -- which will invest alongside its flagship buyout pool -- following its success in the sector, people with knowledge of the matter said this month.