EQT makes $449m offer for Singapore hospital operator

Working in partnership with HMI's management, the private equity firm is offering to buy all outstanding shares for S$0.73 apiece, a 10.6% premium to the July 4 closing price. In lieu of cash, shareholders may choose to exchange their HMI stock for shares in EQT’s acquisition vehicle valued at the same price. HMI opened at S$0.72 on July 8, the first full trading day following the announcement.

Investors representing around 62% of the company’s total issued shares have agreed to support EQT's proposal. Approval from holders of 75% of the issued shares is required for the offer to be completed.

Founded in 1998, HMI operates two hospitals in Malaysia as well as an outpatient care center and training center in Singapore. It also has representative offices in Malaysia, Singapore, and Indonesia. For the year ended June 2018, the company reported MYR468 million ($113 million) in revenue, up from MYR436 million the year before. Over the same period, net profit grew from MYR42 million to MYR60 million.

“As a private equity investor with a demonstrated track record of success in the healthcare sector and in Asia, we are confident that EQT will be an ideal partner for HMI,” said Brian Chang, a partner with EQT in Singapore, in a statement. “EQT now looks forward to supporting HMI’s talented team, whose expertise, entrepreneurship and reputation are best in class.”

Investments in Southeast Asia’s healthcare space by EQT include Singapore-based elderly care service provider Econ Healthcare and healthcare benefits administrator MHC Asia. The firm is currently investing its Asia mid-market fund, which closed last year with $800 million in commitments.

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• Topics
• Southeast Asia
• Healthcare
• Buyouts
• Singapore
• EQT Partners