Caixin
Apr 19, 2021 12:35 PM
BUSINESS & TECH

TPG-Backed TE Asia Healthcare Looks to Join $1 Billion Club

TE Asia Healthcare acquired HSC Medical Centre in Malaysia in December 2019 with the intention of turning it into the foremost orthopedic hospital in the Southeast Asia.  Photo: TE Asia Healthcare
TE Asia Healthcare acquired HSC Medical Centre in Malaysia in December 2019 with the intention of turning it into the foremost orthopedic hospital in the Southeast Asia.  Photo: TE Asia Healthcare

(Bloomberg) — TE Asia Healthcare Partners, backed by private equity firm TPG Capital, expects to achieve a valuation of $1 billion in five years as it expands in Southeast Asia, according to its chief executive.

The Singapore-based company plans to invest $90 million mainly in Malaysia and Indonesia this year, building new cardiac hospitals and repurposing an existing medical facility in Kuala Lumpur into an orthopedic center, CEO Eng Aik Meng said in an interview. That would take TE Asia’s total investment to $260 million by the end of this year, he added.

The health care firm plans to double that investment in the next three to five years as it seeks to set foot in more countries and offers a broader range of specialized medical services, Eng said. “If we continue at this pace, this is easily a $1 billion company” in five years, he said.

Demand for health care services, especially in specialized fields, is set to rise as countries in Southeast Asia become more affluent. The average health care spending in the region was at 4% of GDP in 2018, compared to 5.4% in China and about 10% globally, according to a report by the World Bank.

TE Asia, which has annual revenue of more than $150 million, focuses on oncology, cardiology and orthopedics. It will raise funds for its future investment from external investors when needed, Eng said, adding that he doesn’t rule out the possibility of a listing.

Contact editor Michael Bellart (michaelbellart@caixin.com)

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