BofA Securities and UBS are currently leading the race to secure a mandate from private-equity giant KKR for the sale of its stake in Metro Pacific Healthcare, the Philippines’ largest private hospital group. Sources familiar with the matter suggest that the entire business is valued at an impressive range between $2.5 billion to $3.0 billion. KKR is anticipated to kick off a formal sale process for Metro Pacific Healthcare in the near future, indicating significant interest in the lucrative healthcare market of the Philippines.
Metro Pacific Healthcare, established in 2007, boasts an extensive network comprising 23 hospitals equipped with over 4,000 beds. Additionally, the company operates a range of healthcare facilities, including 26 outpatient care centers and six specialized cancer care centers. With offerings such as mobile laboratories and teleconsultation services, Metro Pacific Healthcare has positioned itself as a comprehensive healthcare provider catering to diverse medical needs.
The attractiveness of the healthcare sector in Asia, particularly in emerging markets like the Philippines, has been a magnet for private-equity investments. The region’s growing population, increasing healthcare awareness, and expanding middle class contribute to robust demand and significant growth prospects in the sector. This has led to a flurry of notable transactions in recent years, exemplified by the sale of Ramsay Sime Darby Healthcare in Malaysia and the acquisition of Columbia Asia’s hospitals in Southeast Asia by investment firms such as TPG and Hong Leong Group.
Moreover, Affinity Equity Partners’ upcoming sale of one of Malaysia’s leading healthcare providers, expected to exceed $800 million, underscores the continued interest of investors in the region’s healthcare assets. The competitive landscape and the potential for substantial returns have fueled heightened activity, positioning the healthcare sector as a focal point for strategic investments in Asia’s evolving market landscape.
