Raffles Medical Group acquires Ho Chi Minh City hospital valued at US$45.6 million

HEALTHCARE provider Raffles Medical Group (RMG) on Monday (Oct 2) said it had acquired a majority interest in American International Hospital (AIH) in Ho Chi Minh City, Vietnam.

This follows a strategic partnership agreement RMG entered into with My My Trading Services Company, subject to the fulfilment of certain conditions and obtaining the relevant approvals, the group said in a bourse filing.

The valuation of AIH was arrived at on a “willing-buyer and willing-seller” basis, after taking into account the valuation of the hospital asset of US$45.6 million – within range of a valuation by Savills Vietnam, said RMG, which commissioned the assessment in July.

The group expects to fund the cash consideration from “internally generated resources”, the company added, without disclosing the acquisition value.

Part of the agreement entails RMG entering into a management-service agreement to manage AIH’s operations.

The filing described AIH as a “purpose-built and fully equipped” 120-bed tertiary hospital with five operating theatres. The hospital, located in An Phu ward in Thu Duc City, has about 500 staff, including 60 doctors; it offers “a full range of specialists and essential diagnostic capabilities”.

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RMG added that AIH, which has been managed by its founders since its inception in 2018, is accredited by Joint Commission International (JCI), an international not-for-profit healthcare accreditation body.

RMG executive chairman Loo Choon Yong said: “The management of AIH has, in a few short years, completed important milestones, including the building up of a strong, positive reputation for its services and attaining JCI accreditation.”

He added: “We are delighted to work with AIH to further build on its achievements.”

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The company said the partnership would enable RMG to augment its clinic operations in the city, while meeting the growing demand for private healthcare services in Vietnam. It would also enable the group to further diversify its hospital operations beyond Singapore and China, as part of its long-term strategy.

RMG added that the expansion will build “stronger resilience” in both its healthcare services and hospital services, with further geographical and revenue-mix diversification.

RMG shares closed at S$1.26 on Monday before the announcement, S$0.01 or 0.8 per cent higher than on Friday.