Fortis plans war chest for Parkway
Fortis Healthcare, Asia’s largest healthcare provider, is gearing up for a battle to acquire the controlling stake in Singapore-based Parkway Holding.business Updated: Jun 09, 2010 22:54 IST
Fortis Healthcare, Asia’s largest healthcare provider, is gearing up for a battle to acquire the controlling stake in Singapore-based Parkway Holding.
The company said on Wednesday that it is planning to raise up to Rs 2,750 crore by issuing securities, and that its board had approved increasing its borrowing limit to Rs 6,000 crore.
Though the company did not spell out the objective behind fund raising, sector watchers are confident it is for the Parkway battle.
“It is clear Fortis is raising funds to acquire Parkway. We will soon see a counter-bid,” said Rashes Shah, pharma analyst, ICICI direct.com.
The company’s tussle for Parkway began when Malaysian sovereign wealth fund Khazanah announced a partial cash offer worth $ 835 million (Rs 3,900) to increase its stake in Parkway to 51 per cent from the current 23 per cent.
Fortis had picked up 23.9 per cent stake in Parkway for about $ 685.3 million (nearly Rs 3,100 crore) from TPG Capital.
Fortis is controlled by billionaire brothers Malvinder and Shivinder Singh. Malvinder, who had moved to Singapore to become chairman of Parkway, told Reuters from there that he had nothing to add to the company statement.