Health Management International Said to Seek Hospital Buyers

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Health Management International Ltd., a Singapore-listed operator of medical facilities, is seeking to sell a hospital in the Malaysian state of Melaka in which it is the biggest owner, people with knowledge of the matter said.

The company, led by Executive Chairman and Managing Director Gan See Khem, is working with Credit Suisse Group AG to sell the Mahkota Medical Centre for about $250 million, the people said, asking not to be named as the process is private.

Health Management owns 48.95 percent of Mahkota, according to its annual report. Mahkota’s other shareholders also plan to sell their stakes, two of the people said. Preliminary documents have been sent out to potential buyers, the people said.

Revenue at Mahkota rose 11 percent to 212 million ringgit ($58 million) in fiscal 2014 as more than 287,000 patients visited the hospital, according to the company’s annual report. The 288-bed tertiary care hospital was established in 1994, according to Health Management’s website.

Health Management declined to comment in an e-mailed response to questions.

Besides Mahkota, Health Management also owns 29 percent of Regency Specialist Hospital in Iskandar Malaysia, according to the annual report. The company posted revenue growth of 19 percent to 292.9 million ringgit in fiscal 2014.

Shares of Health Management rose 1.6 percent to close at 31.5 Singapore cents, giving the company a market value of S$182 million ($134 million). The stock has risen 15 percent this year.

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