Billionaire Quek Leng Chan’s Hong Leong, TPG To Buy Ramsay Sime Darby Healthcare For $1.2 Billion

A joint venture between Malaysian billionaire Quek Leng Chan’s Hong Leong Group and funds managed by U.S. private equity firm TPG have agreed to buy Ramsay Sime Darby Healthcare (RSDH)—which owns and operates hospitals in Malaysia and Indonesia—for 5.7 billion ringgit ($1.2 billion).

The proposed acquisition will help deepen the operations of Columbia Asia Healthcare, a joint venture between Hong Leong Group and TPG. RSDH operates seven hospitals in Malaysia and Indonesia, while Columbia Asia has 22 medical facilities across Southeast Asia.

“RSDH has a unique platform of hospitals with a long history of excellent patient care for the communities that it serves in Malaysia and Indonesia,” Yam Tunku Ali Redhauddin ibni Tuanku Muhriz, Columbia Asia director and TPG senior advisor, said in a statement late Friday. “This will greatly complement Columbia Asia, and we look forward to working with the doctors, nurses and other colleagues from both RSDH and Columbia Asia to continue contributing to healthcare ecosystems in Malaysia, Indonesia and Vietnam.”

Upon completion of the divestment by the first quarter of 2024, Sime Darby will exit the healthcare business to focus on its core automotive and industrial businesses.

“The offer from Columbia Asia was one we could not refuse,” Sime Darby group CEO Jeffri Salim Davidson said. “Our hospitals have grown in number and size and have won many accolades and awards in the last 38 years, growing from strength to strength providing top quality healthcare.”

Apart from Hong Leong Group and TPG, the acquisition of RSDH will be funded by capital from Malaysia’s Employees Provident Fund and a subsidiary of sovereign wealth fund Abu Dhabi Investment Authority.

Hong Leong Group and its partner TPG have been stepping up investments in the healthcare industry. In May this year, the duo won regulatory approval to buy the International Medical University in Kuala Lumpur for 1.35 billion ringgit. The Hong Leong Group is one of Malaysia’s biggest conglomerates with interests in finances, food manufacturing and real estate. Quek—who is chairman of the privately held company and has a net worth of $9.9 billion—inherited his fortune from his father, one of three brothers who started a banking group in the 1920s.