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Heliconia Capital Management to inject capital into Health Management
Posted on Tuesday, 14 November 2017 09:51
Heliconia Capital Management is investing SGD 11.00 million (USD 8.08 million) in Singapore Exchange (SGX)-listed hospital operator Health Management International (HMI).

Under the terms, the private equity group has agreed to subscribe for 16.90 million new shares at SGD 0.65 each.

It does not currently own a stake and will hold 2.0 per cent of HMI’s enlarged capital following the deal.

Closing is expected to occur later this month, subject to the approval from the SGX.

HMI currently operates two hospitals in Malaysia with total bed capacity of more than 500.

The group also provides healthcare and emergency life support education programmes through a medical training centre in its home country Singapore.

It posted revenue of MYR 435.77 million (USD 103.97 million) in the 12 months ended 30th June 2017, up 9.5 per cent on the MYR 397.81 million recorded in the previous year.

Profit after tax for the period totalled MYR 42.21 million, compared to MYR 45.45 million in fiscal 2016.

Commenting on the deal, Heliconia Capital Management’s chief executive Derek Lau said: “We like the regional footprint of HMI’s private healthcare business and its committed management team.”

He added that the target has a “strong interest in the healthcare sector as it ties in well with regional trends of growing middle class and ageing population.”

This is not the Heliconia Capital Management’s first investment this year as it teamed up with other investors to inject about USD 5.50 million into CashShield, an online fraud management system provider based in Singapore.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 17 other deals targeting hospital operators in the Association of Southeast Asian Nations region announced since the beginning of 2017.

The largest of these was the IDR 3.09 trillion (USD 227.54 million) rights issue of Indonesian hospital operator Siloam International.

© Zephus Ltd