Fortis to buy $685 mn stake in Parkway
Indian hospital chain Fortis Healthcare will buy 23.9 percent of Singapore’s Parkway Holdings from U.S. buyout firm TPG Capital in an expansion drive into Asia and the Middle East.
The $685 million deal will give Fortis a foothold in Singapore and Malaysia and make it the biggest private hospital network in Asia, it said.
The move continues an overseas acquisition push by Indian companies looking for new markets and know-how. Top Indian mobile carrier Bharti Airtel is in talks to buy the African operations of Kuwait’s Zain for $9 billion.
Fortis intends to move into other parts of Asia and the Middle East, Chairman Malvinder Mohan Singh told reporters.
“Indonesia, the Philippines and Thailand are markets we would like to evaluate,” Singh told Reuters in Singapore.
Fortis has no immediate plans to raise its stake in Parkway and planned to work with the Singapore firm in expanding across the region, added Singh, who will be nominated Parkway chairman.
Fortis will be the largest shareholder in Parkway, with a stake slightly higher than the 23.32 percent held by Malaysian state fund Khazanah Nasional Bhd, according to Parkway’s website.
“It makes more sense for Fortis to acquire a strategic stake in Parkway than to go for a full-fledged acquisition as it would mean lower risk as well as lower cost,” said Sapna Jhawar, a healthcare analyst with Mumbai-based Sharekhan.
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Above picture of Fortis hospital, Noida courtesy: Neytri