IHH Healthcare Acquires Island Hospital in $896 Mn Deal

The acquisition of the 600-bed Island Hospital will bring the total number of hospitals in IHH’s Malaysian network to 18.

Malaysia-listed IHH Healthcare, one of Asia’s largest private hospital operators, has acquired Island Hospital in Penang from Affinity Equity Partners for a total cash consideration of 3.92 billion ringgit ($896 million).

The acquisition of the 600-bed Island Hospital will bring the total number of hospitals in IHH’s Malaysian network to 18, joining its existing facilities, which include 11 Pantai Hospitals, four Gleneagles Hospitals, Prince Court Medical Centre, and Timberland Medical Centre.

The deal is expected to be completed by the end of 2024.

"We expect significant synergies from the transaction and a unique opportunity to elevate Island Hospital as a leading integrated medical facility in Asia," said Dr. Prem Kumar Nair, Group CEO of IHH Healthcare.

He added that the acquisition aligns with the company’s 'ACE' framework for sustainable growth, benefiting stakeholders across the region.

Citigroup Global Markets Singapore Pte. served as the sole financial advisor to IHH on the transaction.

The acquisition marks a significant expansion of IHH’s presence in Malaysia and further strengthens its healthcare portfolio.

Future Plans

IHH Healthcare anticipates achieving synergies worth over 200 million ringgit within five years of the acquisition.

Island Hospital holds a valuable landbank worth 223.4 million ringgit, and the hospital has secured approvals for future development, ensuring that IHH can continue to expand its operations to meet growing healthcare demands, both locally and internationally.

Established in 1996, Island Hospital is known for its comprehensive medical services and patient care, with nearly 119 resident and visiting specialists across nine Centers of Excellence (COE).

With this acquisition, IHH will further solidify its presence in Penang, the state’s largest private hospital network, with over 1,000 operational beds post-acquisition.

Boosting Medical Tourism

In addition to expanding its domestic presence, IHH stands to benefit from Island Hospital's strong reputation in the medical tourism sector.

As the leading hospital for medical tourism in Malaysia, Island Hospital currently attracts one in three inbound foreign patients to the country.

The hospital’s established brand and ecosystem, developed over the past three decades, will enhance IHH’s support for the growing medical travel industry.

The acquisition will allow IHH to strengthen its role in Malaysia’s medical tourism sector, which continues to attract patients from across Asia, positioning the group for further growth in the region.