TE Asia acquires two Indonesia cardiology practices

TE Asia and Singapore-based family office Altrui Investment Management are investing a combined $50 million across the two projects. TE Asia and doctors at both practices will own 75%, with TE Asia being the majority shareholder. Altrui will hold the remaining 25%.

The two projects are Heartology Cardiovascular Centre operating in the Brawijaya Hospital Saharjo in Jakarta, which opened last September, and an upcoming cardiac hospital in South Jakarta. The latter is expected to be operational by late 2022.

For TE Asia, the investment is part of an expansion in three specialty healthcare services, namely oncology, orthopedics, and cardiology. For Altrui, it helps meet a long-term goal to contribute to Indonesia’s medical infrastructure in a way that combines an experienced partner with best-in-class equipment.

Cardiovascular diseases are the leading cause of death in Indonesia, accounting for more than one-third of fatalities every year. The country suffers from a significant shortage of cardiologists; there are three per one million people compared to around 40 for Singapore and 60 for the US. Until COVID-19 led to border closures, thousands of Indonesians would travel overseas for cardiac treatment every year.

“This comes at a time when public hospitals in Indonesia are struggling to cope with high patient load, especially amidst the continued expansion of universal health coverage and the ongoing pandemic,” Eng Aik Meng, CEO of TE Asia, said in a statement. “Altrui’s partnership is an endorsement of TE Asia’s business model of providing quality specialty healthcare and connecting our doctor-driven practices in a growing regional network of sharing and learning.”

TE Asia intends to scale the Heartology network across Indonesia, using a hub and spoke strategy that links one hospital to smaller cardiac centers. These practices will leverage the partnerships, experience, and resources of Cardiac Vascular Sentral Kuala Lumpur, TE Asia’s flagship cardiac and vascular hospital in Malaysia.

Heartology currently has nine cardiovascular doctors with a balanced mix of age and reputation. The founding doctors are considered leading specialists. “There is no other such private cardiac group practice in Indonesia, and this proprietary relationship is a unique asset,” Eng added.

Eng, a former TPG advisor whose experience spans the healthcare and shipping industries, founded TE Asia in 2014. TE Asia owns specialty hospitals and centers in Indonesia, Malaysia, Singapore, Vietnam, the Philippines, and Hong Kong, employing more than 900 doctors, nurses, and support staff. It has plans to expand regionally in the next 18 months.

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• Topics
• Southeast Asia
• Healthcare
• Buyouts
• Indonesia
• TPG Capital