Healthcare operator IHH Healthcare's indirect subsidiary has proposed the acquisition of Bulgarian Tokuda Group and merging it with Bulgaria’s City Clinic Group for a combined total of RM437m (about EUR60m).
This would make the largest private healthcare provider in Bulgaria, IHH said in a statement to Bursa Malaysia.
Both Tokuda and City Clinic will be acquired via IHH’s indirect 59.6 per cent-owned Turkish entity, Acibadem Saglik Hizmetleri Ve Ticaret AS.
In the statement, IHH said Acibadem was acquiring 100 per cent of the Tokuda Group for RM286.13m, while simultaneously acquiring nearly one-third of the existing stake in City Clinic from its existing operating partners for RM48.29m, with an allotment of shares equivalent to RM102.87m to shareholders who will take part in the merged entity.
The remaining stake in City Clinic will be rolled over into a new combined entity, which will have 76.5 per cent of the newly created holding company’s share capital held by Acibadem Group and remaining 23.5 per cent by City Clinic operating partners.
IHH said the two transactions will lead to the creation of the largest private healthcare provider in Bulgaria and one of the leading healthcare institutions in Central and Eastern Europe.
“It will leverage on Acibadem’s global brand, clinical and operational excellence and know-how and both Tokuda’s and City Clinic’s market positions, high-quality services and reputation. The combined integrated healthcare group will operate under the name Acibadem City Clinic,” the company said in a statement.
The transaction would boosts Acibadem’s beds globally to more than 3,500 across 22 hospitals in three countries.
City Clinic operates three hospitals and three outpatient centers, one of which is the only Joint Commission International accredited hospital in Bulgaria.
Following the opening of its new cancer center in 2015, City Clinic will dominate the market for both cardiovascular and cancer care in the country.
City Clinic’s Sofia Hospital is a teaching hospital of two leading medical schools in the country combining high quality clinical service with education and research.
Tokuda Group is the largest private hospital operator in Bulgaria, running a 52,000 sqm state-of-art tertiary hospital with 550 beds, an outpatient medical center, clinical research center, pharmacy and an hospice, all located at the same site in Sofia.
The hospital was opened in 2006 as the first private hospital owned by a foreign investor in Bulgaria with 100 per cent Japanese investment. It operates as a multidisciplinary service with over 30 medical departments and 22 operating theatres.