Tourist-focused Island Hospital will enhance IHH Healthcare’s attractiveness to higher-paying foreign patients: analysts
Acquisition is seen complementing group’s existing Penang hospitals and yielding immediate commercial synergies
Add BT as a preferred source
INTEGRATED healthcare provider IHH Healthcare ’s RM3.9 billion (S$1.17 billion) acquisition of Penang’s Island Hospital will propel the group to a leading healthcare provider for medical tourists, doubling down on the flow of patients coming from nearby regions, said analysts.
They are largely positive due to longer-term earnings accretion, but note that the acquisition came at a premium valuation and the transaction is pending the finalisation of its funding structure.
Macquarie Capital research analyst Gan Huan Wen said that the 600-bed Island Hospital, which IHH acquired from private equity firm Affinity Equity Partners, is a top destination for medical tourists; in comparison, medical tourism revenue makes up just 5 to 6 per cent of IHH’s Malaysia revenue.
TRENDING NOW
CSE Global independent director quits after clashes with chairman Eugene Lai over board refresh
What’s wrong with Orchard Road? Experts weigh in on the street’s cachet and its future
‘I felt like dying’: Thai Singha beer scion speaks up after disclosure of alleged sexual abuse
Rare brutalist Singapore house opens to the public before changing hands
