India's Fortis buys 24% in Singapore’s Parkway

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Friday, 12 March 2010

Anjana Menon & Bianca Ghose
NDTV Profit

Fortis Healthcare is making inroads into Singapore. The hospital chain will buy 24 per cent stake in hospital chain Parkway Holdings. This comes close on the heels of Fortis closing its 10-hospital acquisition of Wockhardt.

In one of the largest international healthcare deals, India's biggest hospital chain has just bought itself another 16 hospitals.

Fortis is paying around Rs 3120 crore ($685 million) for a 23.9 per cent stake in Singapore based Parkway Holdings, one of Asia's largest healthcare chains. The all cash deal closes in a week with Fortis becoming the largest shareholder in Parkway, followed closely by Malaysian Sovereign fund Khazanah Nasional.

Fortis is buying out private equity fund TPG Capital's share in the Singaporean Stock exchange listed healthcare chain.

This acquisition gives Fortis a good foothold in the South East Asian region. Parkways's 16 network hospitals throughout Asia, including Singapore, Malaysia, Brunei, India and China now makes Fortis' kitty boast of 62 operational hospitals with more than 12,000 beds.

Parkway Holdings also operates 39 Patient Assistance Centres across the globe. So that’s another model that this acquisition allows Fortis to tap into.

Fortis intends to replace the four seats on Parkway's Board that TPG Capital had held and name Malvinder Mohan Singh as the chairman, who is expected to run operations out of Singapore.

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