UK-based healthcare company Bupa has agreed to acquire Acibadem Sigorta from Avicennia Capital, an investment arm of Malaysia’s sovereign wealth fund Khazanah Nasional Bhd, per an announcement dated August 17.
No financial terms of the deal were disclosed.
Bloomberg had first reported the discussions between Khazanah and Bupa, adding that the Malaysian SWF was seeking as much as $300 million from the sale.
According to Bloomberg, Khazanah bought 90 per cent of Acibadem Sigorta for $252 million in 2013 from founder Mehmet Ali Aydinlar and Abraaj Capital, subsequently acquiring the remaining shares after the company stopped trading on the local bourse.
Avicennia Capital is an insurance holding company established by Khazanah in 2013. It also operates a joint venture, Sun Life Malaysia, with Sun Life Financial Inc.
Headquartered in Istanbul, Acibadem Sigorta is Turkey’s second-largest health insurer that caters to both corporate and individual consumers, said Bupa. In 2017, it generated gross written premiums of TRY 913 million ($150 million).
The acquisition will enable Bupa to enter the Turkish market by tapping on Acibadem Sigorta’s local market knowledge.
“Acibadem Sigorta’s impressive growth, first-class management team and customer focus make it an excellent choice for market entry. We have been watching the Turkish market for several years and we believe it offers excellent prospects for growth. We see this acquisition as a long-term strategic investment for us,” said Bupa International Markets CEO Simeon Preston.
Commenting on the deal, Acibdaem Sigorta CEO Gökhan Gürcan said, “Bupa has a strong record of developing and growing the businesses it acquires and has the resources and expertise to help us build on the successes of the past 26 years. Together we can support the continued development of the Turkish health insurance market.”
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