TPG, Johor Corp mull taking Malaysian specialist hospital KPJ private

An investor monitors share market prices at a brokerage firm in Kuala Lumpur, Malaysia, August 24, 2015. REUTERS/Olivia Harris

Malaysian state-owned investment firm Johor Corp has partnered with US-headquartered buyout major TPG to take Kuala Lumpur-listed healthcare provider KPJ Healthcare Bhd off Bursa Malaysia, according to a Bloomberg report.

Quoting people with knowledge of the matter, the report said TPG Capital and Johor Corp, the largest shareholder of KPJ Healthcare, are in talks with banks to finance the potential deal. The firms, however, could decide not to go ahead with the plan, according to the report.

The plan to privatise KPJ Healthcare was earlier shelved owing to the Covid-19 pandemic. In early 2020, Johor Corp was considering its options for its investment in KPJ Healthcare. It was looking at proposals but decided to partner with TPG to take the specialist hospital firm private.

An earlier Bloomberg report said Johor Corp, which owns 38.7% of KPJ, wants to maintain its controlling stake in any deal for the listed firm.

Other major shareholders in the healthcare company include Malaysian state pension funds the Employees Provident Fund Board and Retirement Fund Inc, or KWAP.

KPJ Healthcare started in 1981 as the first specialist private hospital in Johor. The firm has a market value of $1 billion and has more than 28 specialist hospitals located throughout the Southeast Asian nation.

In addition, KPJ has investments in retirement and aged-care resort in Australia and in Sibu, Sarawak, Kuantan, as well as its own Senior Living Care (SLC) centre in Tawakkal Health Centre (THC) in Kuala Lumpur.

Apart from hospital-based care, the KPJ Group made its mark in healthcare-related industries, primarily KPJ Senior Living Care services and Healthcare Education.

“These thriving sub-sectors hold tremendous potential for the future, in line with the increasing consumer demand,” the firm said on its website.

TPG and Johor Corp have not issued official announcements related to the planned privatisation of KPJ.

KPJ’s shares closed higher at 1.21 Malaysian ringgit each on Friday.

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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.