The deal size is valued at $685 million

Hospital chain Fortis Healthcare on Thursday said it was acquiring 23.9 per cent stake in Singapore-based healthcare firm Parkway Holdings for about $685.3 million (about Rs.3,100 crore).

The Indian healthcare major will acquire stake in Parkway Holdings from TPG Capital (formerly Texas Pacific Group).

“Fortis has entered into a definitive agreement with TPG Capital, one of the world's leading private investment firms, to acquire its 23.9 per cent stake in Parkway,” Fortis said in a statement.

Fortis intends to seek four seats on the board of directors of Parkway and also to nominate Malvinder Mohan Singh (current Chairman of Fortis Healthcare) as the Chairman of the board of Parkway, it said. “This acquisition will significantly expand our footprint across the region and place us strategically for geographical and clinical leadership in Asia, a big step closer to our vision of establishing a global healthcare delivery network,” Mr. Singh said.

Network

Parkway Holdings is counted as Asia's premium healthcare provider, with a network of 16 hospitals, having 3,400 beds, spread over six countries, including India.

For Fortis, this comes on the heels of the Wockhardt hospital acquisition in India.

The deal will enable Fortis to establish a Pan-Asian presence, increasing network to 62 hospitals with combined bed strength of over 10,000.

Parkway, a listed entity on the Singapore Stock Exchange, has a market cap of $2.4 billion. Its hospitals are located across Asia.

Parkway Life REIT is the Asia's largest healthcare REIT and is also a part of Parkway Holdings.

“The acquisition of a strategic stake in Parkway will give the combined entity the benefit of an unparalleled medical talent pool in Asia and also access to best in class practices thus creating synergies that will help offer a global quality healthcare experience across the region,” Mr. Singh said.

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