Singapore-based healthcare company IHH Healthcare has formalised a sales and purchase agreement with Comprehensive Care to acquire a 100% stake in Island Hospital.

The all-cash MYR3.92bn ($903.16m) deal will integrate the 600-bed Island Hospital into IHH's portfolio, adding to its clinical capabilities in Penang.

Established in 1996, Island Hospital has 119 resident and visiting specialists across nine Centres of Excellence (COEs).

It has received accreditation from the Australian Council on Healthcare Standards (ACHS) and is one of the few hospitals in South-East Asia with ACHS-certified COEs in cancer care and cardiology.

The hospital specialises in gastroenterology, orthopaedics, oncology, cardiology and general surgery.

IHH Healthcare Group CEO Dr Prem Kumar Nair said: “Together, we will leverage and build on our shared leadership in clinical and care excellence to better serve needs of both local and foreign patients in Penang and Malaysia.

“We expect significant synergies from transaction and a unique opportunity to elevate Island Hospital as a leading integrated medical facility in Asia.”

The deal was signed through IHH Healthcare's subsidiary Pantai Holdings is expected to close by the end of this year.

Once the deal has closed, IHH Healthcare will operate more than 1,000 beds in Penang and expects to receive more than MYR200m in synergies within the next five years.

In addition, the acquisition will enable operational efficiencies through consolidated procurement and increased cross-referral opportunities within the IHH network.

The deal is part of IHH Healthcare's growth plans in Malaysia, which aim to expand the company's bed capacity while enhancing healthcare quality and accessibility.

Island Hospital will be the 18th hospital in the company's Malaysia network, which currently includes 11 Pantai Hospitals, four Gleneagles Hospitals and various other medical centres.

Citigroup Global Markets Singapore is serving as exclusive financial advisor to IHH Healthcare for the acquisition.