AFFINITY Equity Partners-led consortium has entered into a definitive sales and purchase agreement to fully divest its 100% stake in Island Hospital Sdn Bhd to IHH Healthcare Bhd.
The 100% sale at an enterprise value of RM4.2 bil includes Affinity’s 78% stake, with the remainder belonging to the Founder & CEO and senior doctors of the hospital.
Founded in 1996, Island Hospital is the leading 600-bed quaternary healthcare provider in Penang, Malaysia, with 119 specialists across 40 medical and surgical specialties.
Island Hospital is the number one market leader in serving health travellers, attracting one in three inbound foreign patients to Malaysia.
“We are immensely proud of what we have achieved with Island Hospital. Island Hospital’s evolution into a leading healthcare institution that positively impacts the community, stakeholders, and serves as a beacon of medical excellence in Malaysia and beyond,” said Affinity Equity Partners founding chairman and managing partner Tang Kok Yew.
“This is representative of Affinity’s ethos, where we support the vision of the Founder and management team, and invest to deliver transformative operational and financial results. I am confident that Island Hospital will continue to thrive under the IHH platform.”
Meanwhile, Island Hospital founder and CEO Mark Wee expressed delight that the vision of the Island Medical City, an ambitious work-in-progress, will continue under the stewardship of IHH.
“I have every confidence that IHH will continue to support Island Hospital to practice good medicine and strive to be ‘Best In Class’,” he added.
Under Affinity’s ownership, Island Hospital spearheaded an ambitious expansion of its original 300-bed facility, through the development of the adjoining Peel Wing in one of the largest brownfield hospital projects completed during the pandemic.
With additional land acquired and approvals secured for future development, this marks the beginning of Island Hospital’s transformational journey to become one of the largest integrated medical cities in Asia.
Since Affinity’s investment in 2015, Island Hospital significantly expanded its medical and surgical offerings through targeted specialist recruitment and investments in state-of-the-art medical infrastructure, resulting in a tripling of foreign patient volumes and solidifying its position as Malaysia’s leading hospital for medical tourism.
During this period, profitability more than tripled, driven by a greater number of complex cases, and higher operating efficiency from the doubling of bed capacity.
Island Hospital has garnered a plethora of local and international awards, including being ranked #1 in Penang on Newsweek and Statista’s “World’s Best Hospitals 2024” list, and recognised for five awards at the Global Health Asia-Pacific Awards 2024, including “Hospital of the Year in Asia-Pacific” and “Most Sustainable Healthcare Institution”. – Sept 4, 2024
