(Bloomberg) -- Private equity firm TPG Capital Asia is exploring selling a stake in its pathology business in the region ahead of a potential initial public offering for the unit, according to people with knowledge of the matter.

The buyout firm could sell a 20% stake in Pathology Asia Holdings Pte and is working with advisers on the potential divestment, said the people, who asked not to be identified as the process is private. A deal for the medical unit, which is valued at about $2 billion, could come as early as January, the people said.

Deliberations are ongoing and there is no guarantee that TPG will proceed with the planned sale, said the people. A spokesperson for TPG declined to comment.

TPG asked banks to submit proposals for the potential listing of Pathology Asia in March and was weighing Singapore as an option for the listing venue, Bloomberg News has reported. The health-care business has expanded since TPG initially bought 39 pathology laboratories from Healthscope Ltd. in 2018 for A$279 million ($198 million), one of the people has said.

Pathology Asia, originally formed out of the Healthscope purchase, includes the Quest Laboratories brand in Singapore and Vietnam, and Gribbles Pathology in Malaysia. It announced the acquisition of Singapore’s Innovative Diagnostics Pte in 2018, and bought a minority stake in Australian drug testing company Safe Work Laboratories Pty the following year.

TPG Asia’s workforce is spread across Australia, China, India, Korea and Southeast Asia, according to its website. It has invested more than $12 billion in companies including jeweler APM Monaco, clinical research firm Novotech and various investments with Indian conglomerate Shriram Group, the website shows.

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