Parkway shareholders snub Fortis, back Khazanah | business | Hindustan Times
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Parkway shareholders snub Fortis, back Khazanah

Malaysia’s Integrated Healthcare Holdings Ltd (IHHL) on Wednesday said 70 per cent eligible shareholders of Singapore-based hospital group Parkway have voted in favour of its takeover offer, dealing a blow to Fortis Healthcare.

business Updated: Jul 21, 2010 22:28 IST

Malaysia’s Integrated Healthcare Holdings Ltd (IHHL) on Wednesday said 70 per cent eligible shareholders of Singapore-based hospital group Parkway have voted in favour of its takeover offer, dealing a blow to Fortis Healthcare.

However, only 5 per cent of the shareholders have tendered their acceptances so far, IHHL said in a notice to the Singapore Stock Exchange.

IHHL, an arm of Malaysian sovereign fund Khazanah, launched a $835-million (Rs 3,941-cr) partial offer for 51.5 per cent stake in Parkway at SGD 3.78 per share. Fortis had launched a $2.3-billion (Rs 10,856-crore) counter offer at SGD 3.8 per share to fully acquire Parkway.

“We are very pleased that the majority of Parkway shareholders have chosen to approve our partial offer,” said Quek Pei Lynn, director, IHHL.

The success of IHHL’s partial offer will, however, be subject to its a approval by shareholders representing more than 50 per cent of the votes received, not considering its own vote; and also on acceptances for no less than 313,000,000 shares.

The partial offer will close on July 26 or later date(s) as may be announced from time-to-time by or on behalf of the offeror, the notice said. Fortis’ open offer will close on August 12.

At present, Fortis owns 25.4 per cent in Parkway, while IHHL owns a 23.3 per cent stake.