Taikang Insurance Group and Shanghai Hongxin Medical Investment Holding Co. are also weighing participating in the sale, the people said. Taikang is a minority shareholder in the Malaysian firm’s mainland China portfolio, while Shanghai Hongxin holds a stake in one of its hospitals, according to a statement.
Deliberations are ongoing and may not lead to a transaction, the people said. A representative for IHH Healthcare declined to comment. Representatives for Taikang and Shanghai Hongxin didn’t immediately respond to requests for comment.
Parkway China opened its first medical center in Shanghai in 2006, according to its website. It acquired medical and dental clinic World Link Group in 2007 and has facilities in Shanghai, Suzhou and Chengdu. Parkway provides outpatient and inpatient care for adults and children with over 40 specialties such as cardiology, psychiatry, stress management and traditional Chinese acupuncture.
Private for-profit hospitals in China have been the targets of several recent deals. Shanghai Fosun Pharmaceutical Group Co. this month acquired a 70% stake in Guangzhou Xinshi Hospital Co. for 809 million yuan, according to a statement. DCP Capital is in talks to acquire maternity and pediatric care hospital chain Meihua Hospital for US$400 million to US$500 million, Bloomberg News reported in March.
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IHH Healthcare owns Mount Elizabeth Novena (pictured), to which ParkwayLife REIT has a right of first refusal.
