- Raffles Medical (SGX:BSL) is acquiring a majority interest in American International Hospital (AIH) in Ho Chi Minh City for up to US$45.6m, to be fully funded by internal resources.
- The consideration took into account the valuation of the hospital asset by Savills Vietnam in Jul 2023. This follows a strategic partnership agreement it entered with My My Trading Services Company.
- - Read this at SGinvestors.io -
- Maintain BUY rating on Raffles Medical with a DCF-based target price of S$1.65 (LTG: 3%, COE: 8%).
Expands to fast-growing Vietnamese market
- Located in An Phu Ward, Thu Duc City, Ho Chi Minh, American International Hospital (AIH) is a purpose-built and fully equipped 120-bed tertiary hospital.
- - Read this at SGinvestors.io -
- Raffles Medical's management says AIH has seen steady growth in both outpatient and inpatient volumes since inception. That said, we do not expect any near-term contribution from this proposed acquisition, which may take at least 6-9 months to complete, subject to the fulfilment of certain conditions and relevant approvals.
Part of long-term strategy to diversify revenues
- Read more at SGinvestors.io.
