A&O Shearman is advising IHH Healthcare, an operator of private hospitals in Asia, on its $900 million acquisition of Island Hospital in Penang from Affinity Equity Partners.

The transaction is expected to close in November 2024 and is one of the largest M&A deals in Malaysia this year. 

"The proposed acquisition will enable IHH to consolidate and solidify its presence in Penang and strengthen its competitive position across Malaysia," IHH said in a stock exchange filing.

IHH said it will also gain a larger share of medical travel into Malaysia, as Island Hospital is the leading hospital for medical tourism, attracting one in three inbound foreign patients to Malaysia, Reuters reported.

The deal “illustrates the ongoing strength of healthcare M&A in the ASEAN region. Hospitals, clinics, and other healthcare infrastructure have been among the most attractive targets for M&A in the last few years and we have continued to support clients looking to gain exposure to this asset class,” said James Mythen, A&O Shearman partner, in a statement.

The A&O Shearman team was led by Mythen and senior associate Felicia Tan, with support from Purita Thanachoksopon and James Chen.

The core team was further supported by a multidisciplinary transaction team across the firm’s global network, including Ka Sen Wong, Jessica Bowring, Jessica Dye, Tze Siong Ang, Richele Suwita, Michael Benedict, Matthew Del Roso, Ang Yu Jia, Kimberly Lee and Nick Ognibene.