Malaysia’s Ekuinas exits investments in MediExpress and PMCare

Ekuinas CEO Syed Yasir Arafat Syed Abd Kadir speaks at DealStreetAsia's Asia PE-VC Summit 2018 in Singapore.

Malaysia’s state-linked private equity firm Ekuiti Nasional Bhd (Ekuinas) has divested its entire 60 per cent stake in third-party administrators MediExpress Group and PMCare Sdn Bhd to Sumitomo Corporation, it said in a statement on Wednesday.

No financial details of the transaction were disclosed.

Following the deal, both companies’ minority shareholders have partially exited but will continue to hold a meaningful stake and remain part of the management of the respective entities while Sumitomo will emerge as a majority shareholder in both.

“Over the investment period, Ekuinas has successfully delivered on its value creation plans for both MediExpress and PMCare. These efforts comprise operational enhancements of processes and systems, strengthening management and operation teams as well as increasing their market share. Through this divestment, Ekuinas will generate a minimum internal rate of return of 38.8 per cent,” said Ekuinas CEO Syed Yasir Arafat Syed Abd Kadir.

MediExpress, which comprises MediExpress (Malaysia) Sdn Bhd and Health Connect Sdn Bhd, and PMCare are primarily focused on managing both inpatient and outpatient benefits for their clients. While MediExpress focuses on insurance companies, PMCare services corporate clients. Together, both cater to over two million members across more than 3,000 medical providers in Malaysia.

The divestment brings Ekuinas’ total realisation proceeds to more than 2 billion ringgit ($490 million). The PE firm invested $18 million in MediExpress and PMCare in 2015 in its first investments in the healthcare sector.

Last month, Ekuinas picked up a 40 per cent stake in local web hosting and cloud service provider Exabytes Capital Group for 44 million ringgit ($10.7 million), with the option to increase its stake to up to 54 per cent.

This January, Ekuinas launched its fourth fund, Ekuinas Direct (Tranche IV) Fund, at 1 billion ringgit ($240 million) with an option to increase the corpus to 1.5 billion ringgit ($360 million). The fund will invest in Malaysia-based businesses, with an emphasis on core sectors such as education, oil and gas, fast-moving consumer goods (FMCG), retail and leisure, healthcare and services.

Ekuinas’ funds under management stand at about $990 million.

Also Read:

Malaysia’s Ekuinas picks 40% stake in Exabytes Capital Group

Malaysian PE firm Ekuinas launches fourth fund at $240m

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.