Bain-owned APMG sells Southeast Asia assets

CMIG will pay S$9.5 million ($6.8 million) for 51% stakes in both Eastlife and Maxglobe, which operate six clinics under the Sloane brand. The payment will comprise S$6.5 million in cash and S$3 million in shares of CMIG, according to a filing. The shares will be priced at either S$0.018 or a discount of 10% to the stock's volume-weighted average share price for the day before execution of the agreement, whichever is lower.

Founded in 2003, the Sloane Clinic operates four locations in Singapore and two in Malaysia, providing services such as botox, liposuction, plastic surgery and anti-ageing treatments. Under the agreement, which requires shareholder approval, Sloane Clinic co-founder and lead doctor Kenneth Lee will continue to manage the chain after CMIG's purchase.

Lee and his team of doctors will commit to remain at the company for five years after the deal's completion, and will be issued S$2 million of CMIG shares in exchange for a performance assurance guaranteeing S$6 million in profit after tax over the coming three financial years.

"We are upbeat about the Sloane Clinic's partnership with CMIG. This synergy allows the Sloane Clinic to advance its brand in the region as well as China, where there is a rising demand for aesthetic and plastic surgery services," said Lee in a separate statement.

Bain acquired APMG earlier this year for $150 million, picking up a 90% stake and facilitating an exit for Cathaya Capital and the International Finance Corporation. The sale of the Sloane Clinic allows APMG to focus on its assets in China. There has been considerable investor interest in the country's hospital space in recent years due to the opportunities expected from an ageing population and government efforts to encourage patients to consider private sector healthcare.

PE investments in Chinese private hospitals and clinics this year include undisclosed commitments by CITIC Private Equity to New Journey Hospital Group in March and Warburg Pincus to UIB in May. In addition, Temasek recently invested $250 million in hospital operator Columbia Pacific Management for a joint venture in China.

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• Topics
• Southeast Asia
• Greater China
• Healthcare
• Buyouts
• Trade sale
• Singapore
• Malaysia
• China
• Bain Capital Asia
• Exit