Sells entire stake in Khazanah for Rs.3,800 cr
Fortis Healthcare on Monday said it would sell its entire 25.37 per stake in Singapore-based hospital chain Parkway Holdings to Malaysia's Khazanah for over $800 million. This will pave way for Khazanah to takeover Parkway for $2.5 billion, thus, ending the takeover tussle going on between Fortis and Khazanah in the last two months.
Describing the development a win-win situation for both companies, Fortis Healthcare Chairman Malvinder Mohan Singh said: “While we believe that Parkway is a good asset, but every asset has certain intrinsic value that led us to believe that we should divest our stake in Parkway. We have taken into account what is best for every shareholder of Fortis.”
Fortis Global Healthcare (Mauritius), a wholly-owned subsidiary of Fortis Healthcare, has given an irrevocable undertaking to Khazanah's arm Integrated Healthcare Holdings (IHHL) to accept the voluntary general offer for all its shares. Fortis will be receiving the money from Khazanah in about a month's time.
On company's future plans, Fortis Healthcare Managing Director Shivinder Singh said the company planned to list the firm on the Singapore Stock Exchange, thus, going for dual listing.
“Singapore will continue to be our hub for Asian operations and it will also be our regional headquarters. We plan to have a pan-Asia presence and for that, we will go for the secondary listing,” he said. Post-Parkway deal, the company would gain about Rs.350 crore and had a cash surplus of about Rs.900 crore. Mr. Shivinder Singh further said Fortis would continue to look for acquisitions.
“We will identify other exciting opportunities. We will focus in the Middle East, Asia and Indian markets, where we will look for greenfield expansions, management control and acquisitions,” he added.