SINGAPORE Trends and Developments Contributed by: Christy Lim, Susan Wong, Felix Lee and Clarence Kang, WongPartnership LLP
operations of Ginko International, a Taiwan- based manufacturer of contact lenses. Acquisition Financing in the Healthcare Sector A growing demand for healthcare services in the shadow of an ageing population has seen the healthcare sector in South-East Asia experience a surge in M&A activity, with an M&A deal value of USD1.13 billion being recorded in the region between January and April 2024. In the second half of 2024, other notable deals were put to bed such as the acquisition of Malaysia’s Island Hos- pital by IHH Healthcare for USD901 million. Healthcare sector players in Singapore have also been active, with Thomson Medical Group tak- ing up acquisition financing to acquire Vietnam’s biggest private healthcare group, FV Hospital for approximately USD381.4 million, and HMI Medi- cal acquiring a majority interest in Advances Urology Associates, the largest private urology specialist group in Singapore. Other significant healthcare M&A deals in Singapore in the last few years include the acquisition of private clinic groups OncoCare Medical and Novena Heart Centre by Templewater, a Hong Kong-based private equity firm, as well as an investment by Temasek-backed 65 Equity Partners for a 18.3% stake in Tamarind Health as part of a deal for the latter to acquire local cancer specialist TalkMed Group. Private credit lenders and private equity firms have also played prominent roles in the health- care M&A space in South-East Asia. CVC Capital Partners acquired Siloam International Hospitals, Indonesia’s largest private hospital operator, for approximately USD1.1 billion and, alongside other global private equity firms such as Warburg Pincus and TPG, is among the group of bidders seeking to acquire a stake in Metro
Pacific Hospital Holdings, the largest private hospital operator in the Philippines. Deutsche Bank’s private-credit arm, DB Investment Part- ners, is also reported to be currently building up its private-credit business in Asia and is looking to pursue opportunities in the region, including in the healthcare sector. The level of deal activity in this sector may point toward a promising year ahead for acquisition financings in Singapore’s healthcare sector, though contingent upon prevailing market con- ditions, with potentially more of such acquisi- tions being financed by private credit as the private credit market continues to grow in the Asia-Pacific. Taxonomy Alignment and Acquisition Financing Sustainability has become a significant consid- eration in many M&A deals. There is an increas- ing focus on compliance with ESG standards and the management of environmental issues throughout the M&A life cycle, from the initial due diligence phase through to post-completion. ESG red flags, or concerns about a target com- pany’s ESG performance, can be a key reason for acquisition deals being put on hold or falling through. A survey conducted by Deloitte in 2024 of leaders at corporations with revenues of at least USD500 million or private equity funds of at least USD1 billion in assets under management showed that 72% of respondents have decided not to proceed with acquisitions because of ESG red flags, up from 49% of the respondents in 2022. Such considerations play a crucial role in shap- ing the broader financial landscape. As com- panies and investors become more attuned to ESG factors, financial markets correspondingly evolve to take this into account. In particular, we
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