Southern Capital eyes sale of medical practices biz; tasks BofA

afr.com:

Singapore buyout group Southern Capital is preparing to test buyer appetite for its medical practices business, Qualitas Health, appointing Bank of America to assist with the transaction.

The investment bank is understood to have started contacting private equity firms and trade parties, with a typical two-stage auction to ensue in coming weeks. Southern Capital is understood to be seeking a signed deal, valued at above $400 million, before Christmas.

Bank of America declined to comment when contacted on Monday.

Qualitas Health operates medical practices across Australia, and in Singapore and Malaysia and has some 1700 staff and 250 facilities. Sources said the entire group would generate EBITDA of around $35 million per annum, once leases are accounted for.

Qualitas Health has significant operations in Singapore, where its private equity owner, Southern Capital, is based. Louie Douvis

Qualitas Health has been a repeat candidate for an IPO, including in 2015 when Southern Capital brought in CIMB and Credit Suisse to work on a deal that would have put thee company on the Singaporean exchange. Back then, the deal would have valued the business at $US100 million ($156 million). The company was previously listed on Singapore’s secondary Catalist board, but was taken private by Southern Capital in 2011 for $US36 million.

In Australia, the latest financial accounts lodged by Qualitas Health show revenues of $101.6 million for the 12 months to December 31, up from $90.9 million the prior year. Operating profits, however, fell from $10.8 million to $10.3 million, the accounts lodged with the Australian Securities and Investments Commission show. The local business is mainly split between radiology and doctor services. Revenues