Luye Medical considers sale of oncology business in Singapore, sources say

LUYE Medical Group is weighing a sale of its oncology business in Singapore, people with knowledge of the matter said, potentially adding to a wave of health-care deals in the region. 

The company is working with an adviser on the planned divestment of OncoCare Cancer Centre, which has seven clinics in the city-state, the people said. A deal could be worth US$300 million to US$400 million, the people said, asking not to be identified as the process is private.

Some health-care firms and financial investors have shown preliminary interest in the asset, according to the people. Deliberations are at an early stage and Luye Medical could still hold onto the business, said the people. A representative for Luye Medical declined to comment.

A rising middle class and an ageing population have boosted demand for private medical services in Asia, accelerating deal activity in the health-care sector. TE Asia Healthcare Partners is considering selling its oncology centres in Hong Kong, Bloomberg News reported earlier this month. Sime Darby and Ramsay Health Care have shortlisted candidates for the sale of their US$1.5 billion hospital unit in South-east Asia, people with knowledge of the matter have said.

Luye Medical is part of Luye Life Sciences Group, which was founded in 1994, according to the company’s website. The firm owns and operates around 30 medical facilities across Australia, China and Singapore.

OncoCare is one of the largest private oncology practice in Singapore, offering services for cancer patients including radiotherapy, CT scans and MRI imaging, its website shows. BLOOMBERG