NDBIB facilitates strategic investment into Kings Hospital

NDB Investment Bank (NDBIB) was once again at the forefront in the M&A space, this time around in the healthcare services space as it advised and guided Kings Hospital Colombo (Private) Limited and facilitated a significant investment into it with the participation of Ceylinco Life Insurance Limited. 

Kings Hospital, formally known as Oasis Hospital, relaunched themselves under the new ownership comprising of a consortium of healthcare professionals back in 2019. The unique model followed by the hospital resulted in it being a success story and ‘Kings’ has fast become a leading brand for healthcare services.

In such a backdrop, in order to drive growth in the next few years and counter the existing macro-economic challenges, Kings Hospital recently entered into this strategic partnership with Ceylinco Life in a deal structuredto get the optimum benefits to both parties.

Darshan Perera, Chief Executive Officer of NDBIB commenting on the success of the transaction stated, “We are pleased to have concluded this transaction with smooth and cordial negotiations between the parties amidst one of the most turbulent periods in the country. 

We strongly believe that the partnership that has been created between Kings and Ceylinco will emerge into something great and be a true case study for healthcare service providers and other businesses alike. Working very closely on behalf of the shareholders of Kings in this transaction has been indeed a pleasure and a welcome learning experience for NDBIB,” said NDBIB CEO Darshan Perera.

NDBIB’s involvement in the transaction stemmed right from conceptualisation level. Commenting on the transaction Prof. Srinath Chandrasekara, Managing Director of Kings Hospital said, “While the hospital was growing at a rapid pace, the shareholders of the hospital placed significant importance on the foundation on which Kings was built; that is to provide high quality, value-based patient, family and community-centric healthcare, and therefore we were in search of a partner who shared the same ethos and values. NDBIB continuously engaged with the shareholders of Kings and presented structures and ideas suited to cater to our vision and pave the way to make Kings a highly sought-after hospital in the county. We are extremely pleased to have had NDBIB on board on this transaction as their structuring capability, insight into healthcare sector and overall experience in deal execution became invaluable to move this across the finish line”. 

The transaction was structured in multiple phases to ensure a robust balance sheet that would facilitate the next phase of growth of the hospital catering to a multitude of healthcare services with a viewof providing a superior experience to the patients at an affordable value compared to regional offerings.