Mitsui, Carlyle join queue for Quality Healthcare
Japan's Mitsui & Co and United States private equity firm Carlyle Group have submitted preliminary bids for Quality Healthcare Medical Services, which is being sold by India's Fortis Healthcare and is valued at about US$300 million, sources said.
Established in 1868, Quality Healthcare is the largest provider of health-care services to corporations in Hong Kong, with 50 medical centres, over 500 affiliated clinics and more than 20 dental and physiotherapy centres.
At least 10 suitors submitted bids by last week's deadline, including buyout firm Advent International and other companies, said one of the sources.
The suitors are attracted by the opportunity to invest in private health care in China, which is one of the areas that is consistently growing.
JP Morgan was advising the seller, sources said. JP Morgan declined to comment.
Mitsui, Carlyle, Advent and Fortis all declined to comment.
Quality Healthcare was bought by a vehicle owned by Malvinder Mohan Singh and his brother Shivinder in October 2010 for HK$1.5 billion. In 2011, Fortis Healthcare had acquired all the international operations of the family business.
The sources declined to be identified as the discussions were confidential.
A bid by Mitsui, which also owns about 20 per cent of Malaysia's IHH Healthcare, is in line with other Japanese companies that have stepped up their overseas acquisitions.
The sale comes as Fortis scales back its international presence to focus on its home market and pare down debt after an acquisition spree that saw the company buy hospital and medical service firms in Hong Kong, Singapore, Vietnam and Australia.
Private equity firm TPG Capital and Singapore businessman Peter Lim's Thomson Medical were also weighing a bid for the business, but it was unclear if they actually submitted one.
A spokeswoman for Lim declined to comment while TPG was not available to comment.