KKR buys stake in Malaysia’s Avisena in healthcare push

KKR will buy a minority stake in Malaysia’s Avisena Healthcare, deepening the global investment firm’s push into South-east Asia’s healthcare sector amid rising investor interest.

The investment will drive Avisena’s next phase of growth, including the expansion of multi-speciality offerings at its flagship hospitals in Shah Alam and construction of new greenfield hospitals within the Klang Valley, KKR said on Friday (Sep 4).

KKR declined to provide financial details, including the exact stake and the investment amount, when contacted by Reuters. Avisena did not immediately respond to a request for details.

In August, Reuters had reported that KKR had emerged as a preferred bidder to buy about 20 ​to 25 per cent of Avisena in a deal that could be worth RM300 million (US$74.3 million) to RM400 million.

KKR’s healthcare portfolio in the Asia-Pacific includes Medical Saigon Group in Vietnam, Metro Pacific Hospital in the Philippines and Japan’s Topcon, among others, its website shows.

Healthcare assets in South-east Asia are drawing investor interest as rising incomes, ageing populations and demand for private medical treatment have bolstered the sector.

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Malaysian conglomerate Sunway’s healthcare unit raised RM2.9 billion in an initial public offering this year, making it the country’s biggest listing in nine years. TPG has hired banks to explore options for Asia OneHealthcare, including a potential sale or IPO. REUTERS