TPG-backed TE Asia Healthcare sells HK oncology centres to New Frontier

TPG-backed TE Asia Healthcare sells HK oncology centres to New Frontier

Photo from TE Asia's website.

TE Asia Healthcare Partners, a TPG Capital-backed private specialty healthcare group based in Singapore, has agreed to sell its stake in Hong Kong Integrated Oncology Centre Limited (HKIOC) to NF Nestor Investment Holding Limited (New Frontier).

BDA Partners, which advised TE Asia on the sale, did not disclose the financial details of the deal but a Bloomberg report in September last year said the sale would value HKIOC at more than $100 million.

Founded in 2015, HKIOC is the largest pure-play private oncology group in Hong Kong, with more than 80 staff, including 14 oncologists and radiologists, across three clinics.

Apart from running oncology centres on Hong Kong Island and in Kowloon, the company also operates a private daytime cancer treatment centre at Hong Kong Adventist Hospital.

HKIOC founder Ronnie Poon Tung-Ping said the acquisition is a recognition of the company’s accomplishments and growth as a comprehensive oncology diagnostic and medical centre.

“The integration into New Frontier presents a significant opportunity to contribute to the medical development of the Greater Bay Area, and I hope our centres, along with the entire group, can lay a solid foundation in oncology for decades to come,” he added.

New Frontier is one of the largest and fastest-growing integrated healthcare service providers in China. It was founded in 2016 by Antony Leung, former Financial Secretary of Hong Kong, and Carl Wu, former managing director at Blackstone.

TE Asia, backed by TPG Capital, invests in a portfolio of healthcare assets in the region, focusing on specialty centres and hospitals. It currently owns and operates specialty hospitals and medical centres in Hong Kong, Malaysia, Indonesia, Vietnam, the Philippines, and Thailand.

In May last year, Bloomberg reported that TPG was exploring selling TE Asia at a valuation of nearly $1 billion.

Early this month, TPG announced that it has secured close to $8 billion in total commitments for its dedicated Asia private equity and real estate vehicles. It raised approximately $5.3 billion in aggregate capital commitments for TPG Asia VIII, its eighth flagship Asia buyout fund, larger than the predecessor TPG Asia VII, which raised over $4.6 billion in early 2019.

Edited by: Pramod Mathew

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