TPG, Johor Corp weigh taking Malaysia's KPJ Healthcare private

[NEW YORK] US private equity firm TPG Capital and Malaysian state-owned investment company Johor Corp are considering a plan to take Malaysia's KPJ Healthcare private, according to people with knowledge of the matter.

The San Francisco-based firm and the investment arm of the Johor state government are in talks with banks to finance the potential deal involving Malaysia's largest private-hospital operator, said the people.

Shares in KPJ jumped as much 12 per cent in Kuala Lumpur on Friday.

Deliberations are still ongoing and the firms could decide not to go ahead with the plan, said the people.

Johor Corp is continuously reviewing and assessing its investments with a view to strengthening its portfolio, and any announcements will be made in accordance with Bursa Malaysia requirements, head of corporate communications Hasnina Hafiz said.

A KPJ spokesperson said in response to a query that the matter concerns their shareholder and they are not privy to it, and directed Bloomberg News to Johor Corp. A TPG representative in Hong Kong didn't immediately respond to calls and emails seeking comment on a holiday.

Friday's rally took this year's advance in KPJ's shares to 28 per cent, giving it a market value of US$1.3 billion.

Johor owns nearly 36 per cent of KPJ as of April, according to data compiled by Bloomberg. Other major shareholders include Malaysian state pension funds the Employees Provident Fund Board and Retirement Fund or KWAP.

KPJ started in 1981 as the first specialist private hospital in Johor, according to its website. Today, it has more than 28 specialist hospitals located throughout the Southeast Asian nation. The health-care provider also has investments in hospitals in Indonesia, Bangkok and Bangladesh as well as in a retirement resort in Australia.

BLOOMBERG