Affinity Equity Partners concludes its successful investment in Island Hospital Sdn Bhd

Affinity Equity Partners is exiting its controlling stake in Island Hospital Sdn. Bhd.

SINGAPORE,Sept. 5,2024 -- 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. ("Island Hospital" or the "Company") to IHH Healthcare Bhd. ("IHH"). The 100% sale at an enterprise value of RM 4.2 billion (c. US$ 966 million) includes Affinity's 78% stake,with the remainder belonging to the Founder & CEO and senior doctors of the hospital.

Island Hospital is the leading 600-bed quaternary healthcare provider in Penang,Malaysia

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 #1 market leader in serving health travelers,attracting 1 in 3 inbound foreign patients to Malaysia. Medical tourism represents the largest and fastest growing part of the Malaysian private healthcare market.

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.

Improving on its best-in-class clinical capabilities,Island Hospital strengthened its core specialties of orthopaedics,gastroenterology and general surgery,and established new centres of excellence in cardiology,cancer which are accredited by the Australian Council on Healthcare Standards – one of the most internationally recognized accreditation bodies. Island Hospital actively engages with its local community,partners with local charities,and operates a mobile community clinic staffed by Island Hospital's volunteer doctors,nurses and staff. As a testament to its strong relationship with the local community,Island Hospital retained 100% of its employees during the Covid-19 pandemic,despite the significant challenges arising due to border closures and pandemic-related lockdowns.

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 recognized for five awards at the Global Health Asia-Pacific Awards 2024,including Hospital of the Year in Asia-Pacific and Most Sustainable Healthcare Institution.

Rippledot Capital Advisors is the sole financial advisor to the Affinity-led consortium on this transaction.

"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.

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."

Tang Kok Yew

Founding Chairman and Managing Partner,

Affinity Equity Partners

"I am delighted 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'."

Mark Wee

Founder and CEO,Island Hospital

"I would like to express my sincere gratitude for the amazing journey and a successful partnership with Founder and CEO,Mark Wee,and the Island Hospital Board of Directors,management team and staff. We are grateful to have played a part in the Island Hospital story."

Benny Lim

Partner and Head of Southeast Asia,Affinity Equity Partners

About Affinity Equity Partners

Affinity Equity Partners is one of the largest independent private equity firms in Asia Pacific,investing in Asia Private Equity since 1998. Affinity has US$14 billion of assets and funds under management,and is currently investing out of Fund V,a US$6.0 billion fund. Affinity's investment focus encompasses Asia-Pacific with an emphasis on Korea,Australia,New Zealand,Southeast Asia,and Greater China.

About IHH Healthcare

IHH Healthcare is one of the world's largest private healthcare services providers. With an integrated network spanning over 80 hospitals in 10 countries,IHH offers patients comprehensive and personalized care ranging from primary to quaternary,laboratory,diagnostics,imaging and rehabilitation through trusted brands including Mount Elizabeth,Prince Court,Gleneagles,Fortis,Pantai and Parkway.

More information can be found at www.ihhhealthcare.com.