Thomson Medical Group Ltd., a Singapore-based healthcare company, is engaged in advanced negotiations to acquire a majority stake in FV Hospital in Ho Chi Minh City, which is backed by a French entity, Bloomberg reported on Thursday.

According to the sources cited in the report, the group has emerged as the frontrunner in the competitive bidding process, surpassing other contenders.

Additionally, the company is currently collaborating with a financial advisor to facilitate the potential acquisition.

In a bouse filing on the Singapore Exchange (SGX) on Thursday evening seen by Bloomberg, the board of Thomson Medical said that the company is “currently in preliminary confidential discussions to explore a potential transaction.”

“The discussions are ongoing and no definitive terms have been agreed upon between the parties,” Bloomberg quoted the filing.

“Further, there is no certainty or assurance that any transaction will arise from these discussions. 

“The company will make the appropriate announcements where there are material developments in respect of the potential transaction that merit disclosure.”

However, the filing did not disclose the identity of the second party involved in the transaction.

Following Bloomberg’s report, Thomson Medical’s shares experienced a significant surge in the early morning market session on Friday before hitting a 10-percent gain at 9:00 am.

In 2022, Bloomberg reported that Quadria Capital, a private equity firm specializing in healthcare investments in Asia, was actively considering the sale of its ownership share in FV Hospital, with the potential deal estimated to range between US$300 million to $400 million. 

A spokesperson for Thomson Medical declined to comment, while representatives for FV Hospital and Quadria did not immediately respond to requests for comment.

Situated in District 7 of Ho Chi Minh City, FV Hospital was established by Dr. Jean-Marcel Guillon and a team of French doctors 20 years ago as as one of Vietnam’s first private hospitals offering high-quality medical care. 

With a capacity of 220 beds and employing approximately 950 staff members, FV Hospital prides itself on delivering international-standard healthcare services. 

Its patient base comprises people from various backgrounds, including Vietnamese citizens, expatriates residing in the country, as well as citizens from neighboring countries such as Cambodia, Laos, and Myanmar, as stated on its website.

In 2017, Quadria Capital made public its acquisition of a share in FV Hospital for an undisclosed sum. 

Neuberger Berman Private Equity and DEG, the German development finance institution under KfW, a state-owned German investment and development bank, were among the other investors of the hospital.

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