Singapore-headquartered Raffles Medical Group (RMG) will spend $45.6 million on acquiring a majority interest in the American International Hospital in Ho Chi Minh City.
In a Monday release, RMG noted that the deal was subject to some conditions and relevant regulator approvals.
With the transaction, RMG will also enter an agreement to manage the hospital operations, striking a strategic partnership with HCMC-based My My Trading Services Company Ltd., the hospital’s investor and a subsidiary of Tien Phuoc Group.
The valuation of the hospital was in the same range of that made by Savills Vietnam, the RMG release said.
It said the move will enable RMG to meet growing demand for private healthcare services in Vietnam. The move was also part of RMG’s long-term strategy to further diversify its hospital operations beyond Singapore and China and "build stronger resilience in both healthcare and hospital services towards geographical and revenue mix diversification."
Since its completion in 2018, American International Hospital has recorded steady growth. It has 120 beds and a staff strength of 500, including 60 doctors.
Vietnam’s growing private healthcare market has been driven by favorable macroeconomic tailwinds including significant growth potential in healthcare expenditure and high potential for mergers and acquisitions (M&A) deals.
In July, Singapore-headquartered Thomson Medical Group said it has agreed to buy French-backed FV Hospital in Ho Chi Minh City for $381.4 million. The group will pay about $359.6 million upfront and another $21.8 million after FV Hospital meets certain performance milestones, it said.