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, said 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.

Friday's rally took this year's advance in KPJ's shares to 28 per cent, giving it a market value of RM5.5 billion (S$1.79 billion).

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