English
Jul
02
Fortis Puts in Superior Bid for Outstanding Parkway Shares
Posted on Jul 02, 2010 by Sergio Ulloa (G+)
Fortis Healthcare Ltd. has made an offer for all remaining shares in Asian healthcare provider, Parkway Holdings, which surpasses the bid previously put forward by Malaysian government-run bank, Khazanah Nasional Berhad. Previously, Khazanah bid S$ 1.18 billion (US$ 835 million) to more than double its stake in Parwkay Holdings, which would have raised their ownership in the company to 51.5%. Fortis Healthcare has now offered to purchase all remaining shares in Parkway for approximately S$ 3.2 billion (US$ 2.3 billion), buying up the 74.73% of Parkway shares it does not already own at S$3.80 (US$ 2.73) a share. Khazanah's previous bid offered S$ 3.78 (US$ 2.71) a share. Parkway Holdings is one of Asia's largest hospital operators with 16 hospitals through Asia and the Middle East, including hospitals in countries such as Singapore, China, Malaysia, India, the United Arab Emirates and Brunei. Healthcare spending is increasing in Asian markets by up to 17% a year, making Parkway with its strategically located centers of medical excellence a tempting acquisition target for both Fortis and Khazanah. Khazanah owns a stake in Apollo Hospitals Enterprises Ltd. which is Fortis' main competitor in the Indian Healthcare provider market, and the new bid by Fortis is seen as a way to block Khazanah from gaining control of Parkway's hospitals. Malvinder Singh, the Chairman of Parkway, also runs Fortis alongside his brother Shivinder Singh. Malvinder Singh has said he will locate Fortis inside of Parkway's management structure and keep Parkway listed on the Sinapore stock exchange (SGX), although he has yet to say on whether Fortis will remain listed. Companies mentioned: Fortis Healthcare International
Founded in India in 1999, Fortis Healthcare International is a healthcare provider that currently operates 46 hospitals in India, which are organized as a hub and spoke model around their specialty hospitals. They offer laboratory, wellness, information technology, travel and financial services through the wholly owned Religare Enterprises Limited.
Khazanah Nasional Berhad
As Malaysia's state investment company, Khazanah Nasional Berhad is responsible for managing the Malaysian Government's investments as well as strategically investing in new sectors and markets. Khazanah Nasional was incorporated as a public limited company in September 1993 and started operations the following year. All shares are owned by the corporate body of the Minister of Finance Incorporated, except for one owned by Pesuruhjaya Tanah Persekutuan, the Federal Land Commissioner. Khazanah holds investments in more than 50 companies, including but not limited to companies engaged in aviation, banking, electronics, healthcare, manufacturing, and telecommunications.
Parkway Holdings
First listed on the Singaporean stock exchange in 1975, Parkway Holdings has become one of the top-quality integrated healthcare providers in Asia in the intervening years. Parkway now operates 16 hospitals in Asia, with over 3,400 beds throughout Singapore, China, Malaysia, India, Brunei, and the UAE. Parkway also boasts a nursing and health science college, extensive diagnostic, imaging and laboratory resources and the largest foreign owned medical network in Shanghai.