Fullerton Health secures backing of Ping An Capital in $121m deal

Stethoscope lying on medical records.

Fullerton Healthcare Corporation Limited (Fullerton Health), an Asia Pacific (APAC) provider of corporate healthcare solutions, has secured funding in excess of RMB 800 million ($121.1 million) from Ping An Capital Co., Ltd, making it the second largest shareholder in Fullerton Health.

Ping An Capital is the core equity investment platform of Ping An Insurance (Group) Company of China, Ltd. Ping An Insurance (Group) Company of China, Ltd. is the controlling shareholder of Ping An Capital and is reportedly the world’s largest insurer by market value in 2017.

The company has healthcare assets such as the online platform, Ping An Good Doctor, and the offline Ping An Wanjia Healthcare chain, which services 160 million Chinese customers as at May 2017.

The investment in Fullerton Health comes at a time when Beijing is reforming and restructuring its healthcare system aimed to make it more affordable and accessible.

Fullerton Health concentrates on delivering enterprise healthcare services and currently serves over 25,000 companies. Its expansion into mainland China will see it establish approximately 100 clinics in major cities of Beijing, Shanghai and Guangzhou.

In a statement, David Sin, Deputy Chairman, Fullerton Health, said, “with the investment, Ping An Capital and its related parties have become Fullerton’s second largest shareholder. The partnership offers a broad platform for Fullerton Health to expand our presence in the growing Chinese enterprise healthcare market.”

A 2016 Frost & Sullivan research report indicated that China’s market for enterprise healthcare management would grow from $5.7 billion in 2010 to $21.1 billion in 2020.

Speaking on the investment, Liu Dong, Principal Partner of Ping An Capital commented, “Ping An Capital’s investment into Fullerton Health paves the way for Fullerton Health to adapt its well-established business model in mainland China.”

Also Read:

China’s Ping An Good Doctor readies $1b HK IPO

Singapore: Citi’s Asia insurance investment banking head to join Ping An fund as COO

Ping An Insurance buying 10% in Japan drug-maker Tsumura for $244m