* IHH may pay $4.5bln for Healthscope
* Sale would give IHH presence in growing Australian
By Byron Kaye
SYDNEY, March 11 IHH Healthcare Bhd,
Asia's largest hospital operator by market value, is considering
making a A$5 billion ($4.5 billion) offer for Australian
healthcare firm Healthscope, a person familiar with the matter
told Reuters on Tuesday.
The purchase would mark Malaysian-based IHH's first foray
into Australia, where demand for healthcare services is growing
rapidly due to an ageing population. It would also offer a swift
and lucrative exit for U.S. buyout firms TPG and Carlyle Group
Ltd which paid A$1.99 billion for Healthscope in 2010.
Healthscope executives and lead bankers Macquarie Group Ltd
and UBS AG recently met potential buyers in
Asia, the person familiar with the matter said, adding that TPG
and Carlyle had set a deadline for indicative bids in April.
TPG and Carlyle are also considering taking Healthcare
public, said the person who declined to be identified due to the
confidentiality of the process.
News of the potential IHH purchase was first reported by the
Wall Street Journal.
When asked to comment, IHH said in a statement that it was
"always looking at various value accretive opportunities to add
to its portfolio". TPG and Carlyle declined to comment.
Earlier this year, Healthscope said it was considering
several options for a sale process to cash in on strong demand
for quality healthcare assets.
Stocks in Australian private health operators have surged so
far this year, with Ramsay Health Care Ltd up almost 14
percent and Sonic Healthcare Ltd gaining over 7
percent, compared to a 1 percent gain in the broader index.
IHH is 45 percent owned by Malaysian sovereign fund Khazanah
Nasional and joint-listed in Malaysia and Singapore. It operates
hospitals across Asia and in Turkey, according to its website.
Earlier this year, TPG hired Ganen Sarvananthan, the former
head of investments at Khazanah, as a partner and managing
director in Asia.
Healthscope, which owns 44 private hospitals in Australia
and pathology operations in Australia, Singapore, Malaysia and
New Zealand, reported A$328 million in operating earnings before
finance costs, income tax, depreciation and amortisation
(EBITDA) for the year ending June 2013.