Navis Capital said to explore sale of Indonesia’s Tawada Healthcare stake

Medical equipment in an operating theatre

Malaysia-headquartered private equity firm Navis Capital is said to be exploring a sale of its stake in Indonesian medical equipment distributor PT Tawada Healthcare, three people familiar with the matter told DealStreetAsia.

The PE firm has not started the official stake sale process. However, the private equity firm has initiated informal discussions with various parties and hired PwC as a sell-side advisor.

Navis is seeking a valuation of up to 14x of Tawada Healthcare’s annual EBITDA, which is currently in the region of $8-9 million, said one of the people mentioned above. Navis Capital acquired its stake in Tawada Healthcare at around 9 times EBITDA in June 2016.

Navis did not disclose the quantum of the stake it acquired in the healthcare company but sources estimate it to be a significant minority.

Responding to a DealStreetAsia query, Navis Capital said the firm does not comment on market rumor.

According to its website, Tawada Healthcare was initially founded in 1996 as PT Tawada Promedika, which distributed X-ray films from Kodak Health Imaging. In 1999, the company established a sister company PT Melisat Laju Lestari that operated in the clinical diagnostics products space. The two businesses were merged in 2002 to form Tawada Healthcare.

The company serves global healthcare equipment manufacturers such as Carestream, Siemens, Drager, Samsung, Medtronic, AbbottVascular, Smith & Nephew and Baxter Healthcare, enabling them to gain a footprint in Indonesia, according to Navis Capital’s press statement in 2016.

The company represents 13 prominent brands and has 11 branches throughout the major cities in Indonesia, with more than 300 employees.

Tawada Healthcare is among the significant medical device distributors in Indonesia, according to the people mentioned above. Some other players in the market include Singapore’s Transmedic, and IDS Medical Systems Indonesia, which is backed by Hong Kong-based Fung Investments and International Finance Corporation.

Apart from Tawada Healthcare, Navis Capital is also said to be in the middle of selling some of its other portfolio investments including Australia-based education supplies company Modern Star, Singapore-based logistics company Eng Kong Holdings and Vietnam-based Hanoi French Hospital, as reported by DealStreetAsia in 2019.

On the investment front, Navis Capital has been active throughout 2019 inking deals including  Vietnamese private education platform Thanh Thanh Cong Education (TTCE), Malaysian durian exporter Hernan Corporation as well as Thailand’s food processing company Srithai Daily Foods.

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

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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.