Actis sells stake in Sri Lanka's Asiri Hospitals to TPG Growth

TPG Growth paid LKR24 per share for approximately 317.1 million shares, according to a regulatory filing. It now has a 28.86% interest in the business, having already held a small minority stake.

Actis invested in AHH in October 2012 in order to support a consolidation of the company existing assets under the Colombo-listed parent. The GP committed $32 million, including $17.2 million through a private placement of shares for a 19.09% stake, with further shares acquired from existing shareholders.

Earlier in 2012, Actis invested in Asiri Central Hospitals, a holding company for some of the assets that were targeted for consolidation. According to AHH's 2015 annual report, the private equity firm held a 26.17% stake as of March.

Actis saw in AHH an opportunity to replicate the expansion it saw with Sterling Hospitals in India. At the time of the investment, the PE firm told AVCJ that AHH had approximately 600 beds and a 30% market share in Colombo - rising to 40% for diagnostics - and wanted to take the brand nationwide. It said it was open to backing AHH for five years or more.

The company now has a network of four hospitals with approximately 570 beds, representing approximately 30% of Sri Lanka's private sector capacity, with significant expansion underway. It has pioneered a nationwide pathology diagnostics services network, comprising a central lab in Colombo, five satellite labs, and more than 450 collection centers.

AHH employs more than 800 consultant doctors across numerous specialties and has achieved a dominant position areas such as neurology, cardiology and urology.

"We've seen significant growth opportunities in healthcare across the globe, and particularly in Asia, as individuals increasingly choose private medical treatment for the quality of care offered by these institutions," said Vishal Bali, senior healthcare advisor for TPG Growth in Asia, in a statement. "Asiri's management team is addressing this demand in Sri Lanka in a very meaningful way."

AHH's assets include Asiri Surgical Hospital, Asiri Central Hospitals, The Central Hospital, Asiri Hospital Matara, Asiri Diagnostics Services, and Asiri Hospital Kandy. Revenue came to LKR8.59 billion for the 2015 financial year, up from LKR7.96 billion the previous year, while net profit rose to LKR1.58 billion from LKR1.21 billion.

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• Topics
• Exits
• Expansion
• Healthcare
• South Asia
• PIPEs
• Actis Capital
• TPG Capital
• Exit
• Growth capital
• PIPE
• healthcare
• Sri Lanka