Regional insurer AIA Group [HKG:1299] is among those shortlisted for second-round bids of the Greater China asset owned by Icon Group, an Australian integrated cancer care provider backed by one of EQT’s infrastructure funds, according to two sources familiar with the situation.

Icon Group is discussing specifics with AIA Group and two other shortlisted suitors regarding the potential carve-out, the sources said.

The Morgan Stanley-advised deal was reportedly expected to have the successful bidder by September. However, the negotiation has taken longer than expected, one of the sources said, noting that there is no clear stated timeline for completion of the deal.

AIA, with a market cap of HKD 832bn (USD 106.7bn), was on the lookout for acquisition opportunities, according to a Mergermarket report in August 2023 citing the group Chief Executive and President Lee Yuan Siong who noted that it will “actively assess distribution, product, and financial dynamics to deploy capital based on the ability to create value for shareholders over the long term.”

AIA, Icon and EQT did not respond to requests for comment.

Icon has a total of five Icon Cancer Centres in mainland China, while it owns two Icon Cancer Centres and two Icon Specialist Centres in Hong Kong through the acquisition of SunTech Medical Group in 2019, as per its website.

Established in 2015, the company offers a mix of cancer care services, such as medical oncology, radiation oncology, haematology, pharmacy and chemotherapy compounding, to deliver an end-to-end seamless service for patients, according to its website.

Apart from Australia, the company has strategically expanded its operations globally, encompassing Singapore, Mainland China, Hong Kong, and New Zealand, per its website.

Icon has been a portfolio company of EQT Infrastructure Fund V since March 2022 after EQT acquired a 70% stake in the business from a consortium led by Goldman Sachs Asset Management, QIC and Pagoda for AUD 2.4bn (USD 1.7bn) inclusive of debt, as per Mergermarket database.