Global investment firm KKR has agreed to acquire a minority stake in Kuala Lumpur-based hospital operator Avisena Healthcare for an undisclosed amount, according to an announcement on Friday.
The investment will support Avisena’s expansion, including additional multi-specialty services at its flagship hospitals in Shah Alam and the development of new hospitals across the Klang Valley, per the announcement.
Avisena plans to increase capacity across its Shah Alam cluster from about 120 beds at its flagship hospital to more than 400 beds. It is also planning a new hospital in Cyberjaya.
“We look forward to contributing towards building the business and working together with the Avisena team,” KKR managing director SJ Lim said.
The deal comes as DealStreetAsia previously reported that Avisena was seeking to raise 300-400 million ringgit ($75-100 million) at a valuation of about 2-billion ringgit.
The company was working with Mizuho Malaysia as an adviser, people familiar with the matter said at the time.
Founded by Omar Abd Hamid, Avisena traces its roots to the acquisition of a small, distressed private hospital around the time of the Asian financial crisis. It now operates two hospitals in Shah Alam, including Avisena Specialist Hospital and a women’s and children’s facility.
Avisena Group chief executive Elina Nadia Omar said KKR’s regional healthcare experience will help the company expand its capabilities, strengthen its clinical services and serve more patients.
“This strategic partnership marks an important milestone for Avisena and we look forward to building on our strong foundation and creating even greater impact in the years ahead,” Omar said.
KKR has invested more than $20 billion across the global healthcare sector since 2004. Its Asia-Pacific portfolio includes Medical Saigon Group in Vietnam and Metro Pacific Hospital Holdings in the Philippines.
The latest transaction comes as healthcare companies in Southeast Asia continue to come to the M&A market to tap new investors as capital needs grow and shareholders look for liquidity.
In recent developments, shareholders of Ambica International Corporation, a Philippines-based pharmaceutical trader, have been in talks with interested investors, including private equity firms, around a potential stake sale, DealStreetAsia reported.
CVC is also mulling a stake sale for Phuong Chau and exploring options for PT Siloam International Hospitals.
