
Jun
02
Fortis and Khazanah vying for control of Parkway Healthcare
Posted on Jun 02, 2010 by Sergio Ulloa (G+)
Fortis Healthcare, an Indian company, and Khazanah Nasional Berhad, the Malaysian government's investment holding arm are in the middle of a battle over control of Singaporean healthcare group, Parkway Holdings. Khazanah recently offered S$ 1.18 billion (US$ 835 million) through its subsidiary, Integrated Healthcare, to increase its stake in Parkway to 51.5%, thereby controlling the company. A statement of disclosure filed on Monday, May 31st showed that Fortis had increased its stake in the Singaporean healthcare leader prior to Khazanah's offer by 0.03%, through the purchase of 350,000 shares on the market. Fortis, which only bought into Parkway in March 2010, currently holds a 25.37 % stake in the company, while Khazanah currently owns 23.2% of Parkway's shares. Khazanah may have plans to issue up to S$ 500 million (US$ 354 million) in Islamic bonds, known as sukuk, to finance the deal, which would be Khazanah's first bond issue in Singaporean dollars. Fortis' investment in Parkway is seen as a starting point for their ambitions of international expansion. Malvinder Mohan Singh, one of the owners of Fortis, moved to Singapore to become Chairman of Parkway Holdings after Fortis' initial stake purchase. At the time he said that "Parkway's strong presence in Malaysia, with the Pantai Group of Hospitals, gives us great confidence. This acquisition will significantly expand our footprint across the region and place us strategically for geographical and clinical leadership in Asia, a big step closer to our vision of establishing a global healthcare delivery network[.]" However, Khazanah's offer to increase their stake in Parkway and the potential bond issue may force Fortis to make the next move. For both Khazanah and Fortis Healthcare, a majority stake in Parkway Holdings would make for a tempting acquisition, as Parkway maintains one of the leading healthcare treatment and service networks in Asia. Parkway's different units include radiological and laboratory services, a nursing college in Singapore and management services, among others. Parkway's operations include centers of medical excellence such as Mount Elizabeth Hospital, Gleneagles Hospital and Parkway East Hospital in Singapore, as well as the Gleneagles Medical and Surgical Centre and Shanghai Centre Medical and Dental Centre in Shanghai, China. Parkway Holdings also has an extensive direct settlement network with a number of major international health insurance providers throughout the region. Companies Mentioned: Fortis Healthcare International

