Fortis Healthcare on Tuesday said it is keeping all its options open in relation to USD 835 million partial offer launched by Malaysian government fund Khazanah for acquiring 51.5 per cent stake in Singapore-based hospital chain Parkway.
The Indian firm has management control in Parkway.
“At this stage, the company wishes to announce that it is keeping its options open in relation to the Khazanah partial offer and will continue to evaluate its options in the best interest of shareholders of the company,” Fortis said in a statement today.
The firm will make further announcement on its response to the Khazanah partial offer as and when a decision is being reached by the company, the statement said.
Last week the company had announced it would raise up to Rs. 2,750 crore through the securities market.
The Fortis board also endorsed a proposal to increase the company’s borrowing limit to Rs. 6,000 crore.
These steps taken by the Delhi-based company were seen as steps toward gearing itself for a probable takeover battle with the Malaysian fund.
Speaking about the development, the company said these steps were only enabling resolutions.
“The approvals by the board on 9th June 2O1O for raising further capital... increase the borrowing limit of the company to Rs. 6,000 crore are merely enabling resolutions and are subject to the requisite approvals...” Fortis said in a statement.
Fortis, which has a stake of around 25 per cent in Parkway Holdings - a Singapore-based hospital chain - is now facing a challenge from Malaysian sovereign wealth fund Khazanah in its effort to build up a controlling stake in the company.
Last month, Khazanah had launched a partial cash offer worth USD 835 million to increase its stake in Parkway to 51.5 per cent from the current 23 per cent, to get the management control in the firm.
Earlier in March, Fortis had bought a 23.9 per cent stake in Parkway Holdings for about USD 685.3 million (nearly Rs. 3,100 crore) from TPG Capital (formerly Texas Pacific Group).
Keywords: Fortis Healthcare