KUALA LUMPUR (Sept 4): American investment firm KKR is taking a minority stake in Avisena Healthcare as the Malaysian hospital operator aims to nearly double its bed capacity by 2029.

A definitive agreement has been signed for the acquisition, KKR said in a statement without disclosing the transaction details. The investment will be used to expand Avisena's multi-specialty services in Shah Alam and develop new hospitals within the Klang Valley.

“We look forward to contributing towards building the business and working together with the Avisena team,” said SJ Lim, a managing director at KKR.

The deal is subject to fulfilment of customary closing conditions.

Founded in 1996, Avisena currently operates more than 250 licensed beds across two hospitals in Shah Alam, Avisena Specialist Hospital and Avisena Specialist Hospital 2 and plans to increase its total capacity to nearly 600 beds through new facilities in Shah Alam and Cyberjaya.

In August, Reuters had reported that KKR had emerged as a preferred bidder to buy about 20% to 25% of Avisena in a deal that could be worth RM300 million to RM400 million.

A key part of Avisena's expansion is a new tower next to its existing specialist hospital in Shah Alam, which is expected to become operational in 2027 and increase the group's Shah Alam capacity to 418 beds.

The company also operates Avisena Specialist Hospital 2, formerly known as Avisena Women's & Children's Specialist Hospital, which was renamed earlier this week as it broadens into a multidisciplinary hospital.

Beyond Shah Alam, Avisena is developing a specialist hospital in Cyberjaya, targeted for completion in 2029. The planned 156-bed facility forms part of the group’s expansion that is expected to lift its overall capacity to nearly 600 beds by 2029.

Avisena was founded by Datuk Dr Omar Abd Hamid, who remains its deputy chairman, while Elina Nadia Omar is its group chief executive officer.

“We believe KKR’s regional healthcare expertise and broader experience will support our efforts to expand our capabilities, strengthen our clinical offering, and deliver high-quality care to more patients,” Elina Nadia said.

In Malaysia, KKR’s investments have included undersea cable company OMS Group, helicopter services firm Weststar Aviation, and Taylor’s Schools that operates a network of international schools.