Raffles Medical Group is expanding further into Vietnam by taking a "majority stake" in a hospital in Vietnam's Ho Chi Minh City valued at US$45.6 million.
RMG, which will fund the acquisition via its internal resources, did not disclose the exact stake it will hold in the American International Hospital.
The deal is subjected to the fulfilment of certain conditions and regulatory approvals.
Singapore healthcare players are increasingly setting their sights on Vietnam.
On July 12, Thomson Medical Group A50 announced plans to acquire Vietnam’s FV Hospital for up to US$381.4 million ($517.1 million), making this the largest healthcare acquisition in Southeast Asia (SEA) since 2020.
The American International Hospital, which is to be acquired by RMG, was completed in 2018. It is a purpose-built and fully equipped 120-bed tertiary hospital.
See also: New IHH Healthcare CEO Nair lays out growth plans
It has five operating theatres and offers a full range of specialists and essential diagnostics capabilities. It currently has about 500 staff, including 60 doctors.
As part of the agreement, RMG will also enter into a management service agreement to manage the AIH operations.
According to RMG, this arrangement will enable it to penetrate the growing demand for private healthcare services in Vietnam and augment its clinic operations there.
See also: Seatrium to pay $76.5 mil to Singapore authorities under deferred prosecution agreement
It is also part of its long-term strategy to further diversify its hospital operations beyond Singapore and China and build "stronger resilience" with "further geographical and revenue mix diversification," says RMG.
"Coupled with our three ambulatory care facilities in Vietnam and facilities in the region, RMG is committed to offer a unique regional proposition: the Raffles brand of care and hospital services to meet patients’ diverse needs and preferences," says executive chairman Dr Loo Choon Yong.
"Also, the AIH hospital management service contract positions RMG well and supports our ambition to be the healthcare provider of choice for people in the region,” he adds.
According to RMG, the valuation of AIH was arrived at on a “willing-buyer and willing-seller” basis, after taking into account the valuation of the hospital asset of US$45.6 million, which is within range of a valuation by Savills Vietnam.
RMG ended Oct 2 at $1.26 up 0.8%.
