Abraaj sells Acibadem stake

Abraaj Capital, a private equity manager investing in the rapidly growing economies of the Middle East, Africa, Turkey and Asia, said on Friday that it had sold its entire 50 per cent stake in Acıbadem Sağlık Yatırımları Holding and affiliated companies to Integrated Healthcare Holdings Sdn. Bhd (IHH) and Khazanah Nasional.

Under the terms of the agreement, IHH and Khazanah shall acquire a combined 75 per cent shareholding in Acibadem from Abraaj and Turkey’s Aydinlar family through a combination of a cash payment and the exchange of newly issued IHH shares.

Upon completion of the transaction, Abraaj will become a shareholder in IHH, which is one of the largest emerging market healthcare service providers, operating over 3,000 beds across 76 healthcare facilities in Asia. The combined group will be amongst the largest hospital groups operating globally and across emerging markets. 

The total value of the deal was not disclosed by the companies.

IHH is currently owned 70 per cent by Pulau Memutik Ventures Sdn. Bhd, a wholly owned subsidiary of Khazanah, and 30 per cent by MBK Healthcare Partners Limited, a wholly owned subsidiary of Mitsui & Co.

Arif Naqvi, Founder and Group Chief Executive of Abraaj Capital, said: “This transaction demonstrates that quality assets in growth markets can outperform and generate significant returns – even during challenging periods. The transaction, which is one of the largest to come out of emerging markets, also reinforces the increasing opportunities for collaboration among emerging markets participants.”

He continued: “It has been extremely rewarding for Abraaj Capital to be a part of the Acibadem growth story in which the Aydinlar family has been an exceptional partner.  We now look forward to this exciting new journey in partnership with Khazanah and Mitsui”.

The transaction generates an attractive return for Abraaj which will receive half its proceeds in cash and half in newly issued IHH shares on which it will aim to generate future returns.

The investment in IHH follows Abraaj’s expansion into Southeast Asia through the opening of its Singapore operations earlier this year.

Bank of America Merrill Lynch and Goldman Sachs acted as joint financial advisors to Abraaj Capital and the Aydinlar family on the transaction.

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