Temasek-backed Heliconia invests $8m in SGX-listed Health Management International

Stethoscope lying on medical records.

Private equity firm Heliconia Capital Management, a unit of Singapore’s state investor Temasek Holdings, has emerged as a strategic shareholder in SGX-listed regional private healthcare provider Health Management International Ltd (HMI) with a S$11 million ($8.09 million) placement for a 2 per cent stake in the firms’ enlarged share capital.

HMI owns two tertiary hospitals in Malaysia and a healthcare training centre in Singapore.

Heliconia has subscribed for 16.9 million new ordinary shares at S$0.65 per share to Orchid 2 Investments Pte Ltd, a Singapore-based vehicle of Heliconia Capital.

In an official statement, Derek Lau, CEO of Heliconia, said, “Heliconia has strong interest in the healthcare sector as it ties in well with regional trends of growing middle class and ageing population.”

Through various funds that it manages, Heliconia has invested in Singapore enterprises operating across a number of industry verticals, with the aim of facilitating the expansion of their business operations and internationalisation. This investment into HMI will see it leverage Heliconia’s network and resources to facilitate its regional expansion.

HMI has a presence in Singapore, Malaysia and Indonesia. Currently, its assets include two tertiary hospitals in Malaysia, a healthcare training centre in Singapore and a network of representative offices in Indonesia, Malaysia and Singapore.

Its flagship hospital is the 288-bed Mahkota Medical Centre (Mahkota), which was established n 1994 and is located in Malacca, a UNESCO World Heritage Site and a popular destination for medical care and leisure. It claims to be the largest private tertiary hospital in South Malaysia and offers a comprehensive suite of healthcare services, as well as nuclear medicine services.

Its second hospital, the 218-bed Regency Specialist Hospital (Regency) launched in 2009, is located in Iskandar Malaysia, the special economic zone in the state of Johor. It is the only private hospital in Malaysia with a 24-hour Emergency & Trauma Centre, providing round the clock specialist attention and medical care to both local and international patients.