Khazanah’s Acibadem Said to Bid for Turkish Medicana Clinics

Turkey’s biggest hospital chain, Acibadem Saglik Hizmetleri ve Ticaret AS, is close to buying rival Medicana Saglik Grubu, four people with knowledge of the matter said.

Acibadem, controlled by Malaysian state investment company Khazanah Nasional Bhd, was the only bidder for Medicana Saglik after Abraaj Group Ltd., a Dubai-based buyout fund, decided against making an offer, the people said, asking not to be named because the matter isn’t public. Acibadem is conducting due diligence with the sellers, one of the people said, and an agreement may be signed this year.

Turkey’s health-care industry offers greater potential for growth than other developed economies. The country of more than 80 million citizens has 2.5 hospital beds per 1,000 people, compared with a global average of 2.8, figures from consultancy Deloitte, show.

IHH Healthcare Bhd, which owns 60 percent of Acibadem, rose as much as one percent to 5.05 ringgits in Kuala Lumpur, the most since Sept. 19.

Argus Capital Group Ltd., Qatar First Investment Bank and ADM Capital are among buyout firms that have invested in Turkey’s private hospitals, after the government deregulated the country’s health-care system and boosted compulsory coverage of social-security services to all citizens about 10 years ago.

Representatives for Acibadem and Medicana didn’t respond to telephone calls seeking comment, while representatives for Abraaj Group and Khazanah’s Turkey office declined to comment.

Medicana, owned by chairman Huseyin Bozkurt, has 11 hospitals in Turkey including sites in Istanbul and Ankara, according to its website. The group has invested $600 million in its hospital network, Bozkurt’s told news portal last year.

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