PENANG, MALAYSIA, September 4, 2024 – Affinity Equity Partners has completed the sale of its controlling stake in Island Hospital Sdn. Bhd. to IHH Healthcare Bhd., marking the end of a successful partnership. The transaction, valued at RM 4.2 billion (approximately US$966 million), includes Affinity’s 78% stake, along with shares owned by the hospital’s founder, CEO, and senior doctors.
The deal represents a major move in the healthcare industry, particularly in Malaysia, where Island Hospital, based in Penang, is a leader in medical tourism. The 600-bed quaternary hospital, founded in 1996, attracts one in three foreign patients coming to Malaysia, solidifying its place as the country’s top provider of healthcare services to international patients.
“We are immensely proud of what we have achieved with Island Hospital,” said Tang Kok Yew, Founding Chairman and Managing Partner of Affinity Equity Partners. “Island Hospital’s evolution into a leading healthcare institution that positively impacts the community, stakeholders, and serves as a beacon of medical excellence in Malaysia and beyond. I am confident that Island Hospital will continue to thrive under the IHH platform.”
During Affinity’s ownership, which began in 2015, Island Hospital underwent a significant transformation. This included the expansion of its original 300-bed facility through the development of the Peel Wing, one of the largest hospital projects completed during the pandemic. The hospital also secured additional land and approvals for future developments, setting the stage for its transformation into a medical city.
Mark Wee, Founder and CEO of Island Hospital, praised the acquisition, stating, “I am delighted that the vision of the Island Medical City, an ambitious work-in-progress, will continue under the stewardship of IHH. I have every confidence that IHH will continue to support Island Hospital to practice good medicine and strive to be ‘Best In Class.’”
Under Affinity’s leadership, Island Hospital not only expanded its physical infrastructure but also enhanced its medical capabilities. It strengthened key specialties such as orthopaedics, gastroenterology, and general surgery, while establishing new centers of excellence in cardiology and cancer care, which have received accreditation from the Australian Council on Healthcare Standards. The hospital’s patient volumes tripled during this period, driven by an increase in foreign patients and higher operating efficiency.
Island Hospital also garnered several prestigious awards during this time, including being ranked #1 in Penang on Newsweek and Statista’s “World’s Best Hospitals 2024” list and securing five awards at the Global Health Asia-Pacific Awards 2024. These accolades, including Hospital of the Year in Asia-Pacific, highlight the hospital’s leadership in both medical excellence and sustainability.
Benny Lim, Partner and Head of Southeast Asia at Affinity Equity Partners, reflected on the collaboration, saying, “I would like to express my sincere gratitude for the amazing journey and a successful partnership with Founder and CEO, Mark Wee, and the Island Hospital Board of Directors, management team, and staff. We are grateful to have played a part in the Island Hospital story.”
IHH Healthcare, one of the world’s largest private healthcare providers with a network spanning 80 hospitals in 10 countries, sees this acquisition as a significant addition to its portfolio. With a focus on providing comprehensive and personalized care, IHH is well-positioned to further Island Hospital’s mission of delivering best-in-class medical services across the region.