RMG inks partnership and management deal with Vietnam hospital

Singapore’s private hospital group seeks to acquire a majority interest.

Raffles Medical Group (RMG) declared that it entered into a strategic partnership agreement with My My Trading Services Company Ltd (MyMy), Vietnam, to acquire a majority interest in American International Hospital (AIH) in Ho Chi Minh City, Vietnam.

However, the acquisition is still subject to the fulfilment of certain condition precedents and relevant regulatory approvals. 

As part of the agreement, RMG will also enter into a management service agreement to manage the AIH operations.

The arrangement will also allow RMG to penetrate the growing demand for private healthcare services in Vietnam and augment our clinic operations there. 

It is also part of RMG’s long-term strategy to diversify its hospital operations beyond Singapore and China. 

The valuation of AIH was arrived at on a “willing-buyer and willing-seller” basis, after taking into account the valuation of the hospital asset of US$45.6 million, which is within range of a valuation by Savills Vietnam Co., Ltd. 

Completed in 2018, AIH is a purpose-built and fully equipped 120-bed tertiary hospital located in An Phu Ward, Thu Duc City, Ho Chi Minh City. 

AIH has five operating theatres and offers a full range of specialists and essential diagnostics capabilities.

AIH is also a Joint Commission International (JCI) accredited hospital and has been managed by its founders since commencing operations in 2018.