TPG and Johor to make KPJ private

But, the companies can decide not to push through with the plan.

US private equity firm, TPG Capital, and Malaysian state-owned investment company, Johor, are planning to make Malaysia's KPJ Healthcare private.

The San Francisco-based firm and the investment arm of the Johor state government are in talks with banks to finance the potential deal involving Malaysia's largest private hospital operator, Bloomberg reported.

"Johor is continuously reviewing and assessing its investments to strengthen its portfolio, and any announcements will be made under Bursa Malaysia requirements," head of corporate communications, Hasnina Hafiz said.

A KPJ spokesperson declined to comment and directed the matter to Johor. A TPG spokesperson also declined to comment.

Shares in KPJ jumped as much as 12% in Kuala Lumpur on 1 October. Other shareholders include the Employees Provident Fund Board and the Retirement Fund, or KWAP.