Vietnam’s VinaCapital explores Thu Cuc Medical stake sale

Vietnamese investment management firm VinaCapital is exploring the sale of its minority stake in Thu Cuc Medical System TCI in a deal that could value the Hanoi private hospital operator at between $150 million and $200 million, said two sources with direct knowledge of the matter.

VinaCapital is in talks with at least one financial investor on the potential sale of its roughly 30% stake in Thu Cuc Medical, the sources said, declining to be named as the matter is private.

A VinaCapital-led consortium paid $26.7 million for the stake in 2020, one of the sources said.

“Because TCI is well-managed and highly regarded, we have, over time, received a number of inquiries from parties interested in acquiring our stake,” a VinaCapital spokesperson said in an email to Reuters.

VinaCapital has a fiduciary duty to consider all proposals, the spokesperson said, adding that it routinely uses outside advisors to help evaluate such proposals.

Thu Cuc Medical did not respond to a request for comment.

The potential sale comes as healthcare assets attract more interest, with investors betting on the sector’s ability to weather a challenging economic environment.

Singapore’s state investor Temasek Holdings in April announced the acquisition of an additional 41% stake in India’s Manipal Health Enterprises, giving it a total holding in the private hospitals operator of 59%.

Thu Cuc Medical, formerly known as Thu Cuc International General Hospital, was founded in 2011. It has a hospital in Hanoi’s Tay Ho district and three other clinics in the capital, according to its website.

VinaCapital has more than $3.9 billion of assets under management, according to its website, including a closed-end fund listed on the London Stock Exchange.

Last month, it partnered with Denmark’s A.P. Moller Capital to launch a transportation and logistics infrastructure platform to identify and invest in local companies.

Reuters

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