American global investment firm KKR is negotiating with Heliconia Capital, owned by Singapore’s Temasek Holdings, to acquire Vietnamese private eye hospital operator Saigon Medical Group (SMG), according to a source with knowledge of the matter.
It is not known whether the transaction would be finalized. Either KKR or Heliconia has disclosed their discussions.
A possible deal value is not known, according to the source, who asked not to be named as the matter is private.
Ho Chi Minh City-headquartered SMG currently operates 14 hospitals across Vietnam, comprised of nine eye hospitals and five general hospitals. In addition, it runs one Eagle Eye Center in HCMC as a partnership with Singapore’s Eagle Eye Center, a leading eye hospital worldwide.
SMG is considered Vietnam’s largest chain of eye hospitals. In all, the medical group has some 1,600 medical staff, according to its website.
HCMC eye doctor Thai Thanh Nam established SMG in HCMC in April 2004. Temasek’s Heliconia Capital acquired it in 2019 without publicizing the deal value. The ophthalmologist left the private chain, and in March 2023 took the director post at newly-established private Viet Eye Center, also in HCMC.
Vietnam’s private healthcare sector is luring foreign investors. Thomson Medical Group, also based in Singapore, said on July 12 that it had agreed to buy French-backed FV Hospital in HCMC for $381.4 million.
“FV Hospital has been extremely successful in the past two decades in establishing itself as a premium general hospital. As part of TMG, we hope to work together to take their growth plans to the next level, moving in step with the domestic and medical tourism market momentum in Vietnam,” said Kiat Lim, Thomson Medical’s executive vice chairman.
This is the biggest-ever hospital acquisition deal in Vietnam, home to a population of 100 million. “The deal highlights the growing significance of Vietnam’s burgeoning healthcare,” the Singapore-listed company said.
It also marks Southeast Asia’s largest healthcare acquisition since 2020, it added.
FV was founded by French medical doctor Jean-Marcel Guillon in 2003 with a group of French physicians who shared the vision of bringing world-class healthcare to Vietnam. Located in the burgeoning HCMC’s District 7, FV Hospital has evolved into a full-service, one-stop provider of quality healthcare for patients locally, as well as from Cambodia.