Fortis Healthcare on Monday bowed out from the takeover battle of Singapore’s Parkway Holdings, paving the way for Malaysian sovereign wealth firm Khazanah to control Asia’s largest hospital chain in a $2.5 billion transaction.
The move, however, made Fortis, controlled by Singh brothers — Malvinder and Shivinder Mohan Singh — richer by $83 million (about Rs 350 crore) in less than four months.
“We have decided to divest our strategic stake in Parkway and have reached an agreement with Khazanah to accept their voluntary general offer,” Malvinder Singh, chairman, Fortis Healthcare said.
Fortis Healthcare Ltd said it has decided to sell its entire stake in Parkway Holding to Malaysia's Khazanah for about Rs 3,800 crore. Fortis held 25.37 per cent stake in Parkway Holdings. Fortis Healthcare MD Shivinder Singh, said that Singapore would continue to be the hub for the company’s Asian operations. The company also plans to list on the Singapore Stock Exchange.
“It will be our regional headquarters, we are evaluating stock exchange listing of Fortis in Singapore,” he said.
“The company will become cash surplus. We will now have a cash surplus of about Rs 900 crore,” Fortis Healthcare CFO Yogesh Sareen said.
As of June 30, Fortis had a net debt of Rs 2,930 crore with a debt-equity ratio of 0.7:1.
“We will identify other exciting opportunities. We will focus in West Asia, Asia and Indian markets, where we will look for greenfield expansions, management control and acquisitions,” Malvinder Singh said.