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.