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, said the people.

Shares in KPJ jumped as much as 12% in Kuala Lumpur today.

Deliberations are still ongoing and the firms could decide not to go ahead with the plan, said the people.

Johor Corp is continuously reviewing and assessing its investments with a view to strengthening its portfolio, and any announcements will be made in accordance with Bursa Malaysia requirements, its head of corporate communications Hasnina Hafiz said.

A KPJ spokesperson said that the matter concerns their shareholders and they are not privy to it, and directed Bloomberg News to Johor Corp. A TPG representative declined to comment.

Friday’s rally took this year’s advance in KPJ’s shares to 28%, giving it a market value of RM5.5 billion.

Johor Corp owns nearly 36% of KPJ as of April, according to data compiled by Bloomberg. Other major shareholders include the Employees Provident Fund and Retirement Fund Incorporated or KWAP.

KPJ started in 1981 as the first specialist private hospital in Johor, according to its website. Today, it has more than 28 specialist hospitals throughout Malaysia.

The healthcare provider also has investments in hospitals in Indonesia, Bangkok and Bangladesh as well as in a retirement resort in Australia.