Symphony Healthcare Holdings Limited, a wholly owned subsidiary of Symphony International Holdings, is to invest USD50 million to acquire a non-controlling minority shareholding in Integrated Healthcare Hastaneler Turkey Sdn Bhd (IHT).
IHT is the controlling shareholder of Acibadem Saglik Yatirimlari Holding AS (ASYH) and is owned by Integrated Healthcare Holdings Sdn Bhd (Integrated Healthcare), the healthcare subsidiary of Khazanah Nasional Berhad (Khazanah), the investment holding arm of the government of Malaysia. Completion of the transaction is scheduled for February 8th 2012.
Symphony has also negotiated an option to convert its investment in IHT into a minority stake in Integrated Healthcare, which will give it further exposure to the fast growing private healthcare sector in Asia and certain other emerging markets.
Integrated Healthcare is one of the largest private healthcare providers in the world. Its portfolio of healthcare assets, which include Parkway Holdings Limited, (“Parkway”), Pantai Holdings Berhad (“Pantai”), International Medical University (“IMU”), ASYH and a significant shareholding in Apollo Hospitals Enterprises Limited (“Apollo”), give the company a broad footprint of assets in Turkey, Malaysia, Singapore, India and a presence in China, Brunei, Abu Dhabi as well as Central & Eastern Europe.
This latest healthcare investment complements Symphony’s existing healthcare portfolio, which currently comprises Parkway Life Real Estate Investment Trust, one of Asia’s largest listed healthcare REITs. The Symphony team’s strong track record of investing in the healthcare sector started in 1995 with an investment in Apollo Hospitals in India, followed in 1999 by a strategic stake in south-east Asia’s largest healthcare provider, Parkway Holdings Limited in Singapore. Two private equity funds managed by the team at Symphony sold their shares in Apollo and Parkway to Khazanah in 2005 and 2008 respectively. In addition, Symphony, which had also invested in Parkway, sold its Parkway shares to Khazanah as part of Khazanah’s USD3.5 billion takeover offer to privatise Parkway in Q3 2010, which resulted in Symphony generating a 21.6% IRR on its Parkway investment. Anil Thadani and Sunil Chandiramani were also previously directors of Parkway.
