Blackstone, Bain Capital, KKR and Abraaj Capital are reported to have been shortlisted for a second round of bids for a stake in Indonesia’s largest private hospital operator, in a deal that could fetch as much $300m.
A fifth of Siloam Hospitals has been put up for sale by PT Lippo Karawaci, which is understood to be hoping for a valuation of over 20 times the company’s forward core earnings, according to Reuters.
Lippo plans to sell a minimum 20 per cent in the business – which accounts for about 30 per cent of the group’s asset value – for between $200m and $300m, but could increase the stake to 49 per cent if the price is right, the report said.
The company has hired Bank of America Merrill Lynch to run the auction.
The company operates nine hospitals and is currently building four new ones, the report added.
A deal with either KKR or Blackstone would mark the firms’ first direct investment in Indonesia.
Private equity firms are increasingly looking to buy stakes in Indonesian healthcare and consumer businesses despite lofty valuations, as they are betting on the country’s fast-growing economy.
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