Malvinder and Shivinder Singh-promoted Fortis Healthcare India on Monday said that it would acquire Singapore affiliate Fortis Healthcare International Pte Ltd in an all-cash deal as part of a consolidation of its domestic and global operations.
The board of directors approved the acquisition move on Monday. The valuation for this will be advised by an independent agency.
After the consolidation, Malvinder Singh, who is group chairman, Fortis Healthcare, will take over as executive vice-chairman of the combined entity. His sibling Shivinder Singh, managing director, Fortis Healthcare India Ltd, would take over as executive vice chairman.
The company would make a total investment of $1 billion in the next three years, which would be a mix of equity and debt.
"Our vision is to create a leadership position in integrated healthcare delivery in the pan-Asia Pacific region, this integration is a fundamental step in that direction," Malvinder Singh told journalists after the board meeting. He said the total revenue of the combined entity would be in the range of $1 billion.
Singh said the demand for better healthcare is rising significantly in the Asia-Pacific region due to increased urbanisation, and the group would cash in on the opportunity.
After the consolidation exercise, the combined entity will have over 74 hospitals, more than 12,000 beds and 580 primary care centres.