
Jul
27
Fortis Ends Bidding War Leaving Khazanah in Position to Buy Parkway
Posted on Jul 27, 2010 by Sergio Ulloa (G+)
On Monday July 26th 2010, Fortis Healthcare Ltd. rescinded its SGD 3.2 billion (USD 2.3 billion) offer to buy remaining Parkway shares, leaving the subsidiary of Malaysian sovereign fund Khazanah, Integrated Healthcare Holdings, free to purchase all outstanding Parkway Holdings shares. Khazanah, through Integrated Healthcare, had originally offered SGD 1.18 billion (USD 835 million) to increase their stake in Parkway Holdings from 23.9 to 51.5% in May 2010. Fortis then offered SGD 3.78 (US2.71) per share for all remaining shares. However, since Fortis dropped their plans for taking over Parkway on Monday, Khazanah has offered SGD 3.5 billion (USD 2.57 billion) for all outstanding shares in Parkway, making it three times larger than their previous offer for a simple majority stake. Fortis has come to an agreement with Khazanah to sell its 282.7 million share stake in Parkway at a price of SGD 3.95 (USD 2.9) per share, translating to a total of approximately SGD 1.12 billion (USD 822.3 million). The deal will give Khazanah the keys to the Parkway kingdom, which includes 16 hospitals throughout Asia, offering more than 3,400 beds in places like Singapore, China, Malaysia, Brunei and India. Malvinder Mohan Singh, the Chairman of Fortis and Parkway said that "After considered and deliberate discussions, we have decided to divest our strategic stake in Parkway and have reached an agreement with Khazanah to accept their voluntary general offer. Our decision to exit our investments took into account the interest of all stakeholders of Fortis. It was made after careful assessment of the intrinsic value of Parkway and in light of other growth opportunities available to us across the region and globally." The offer made through Integrated Healthcare will close on August 16th, with a Director of Integrated Healthcare Holdings, Ahmad Shahizam Mohd Shariff, saying that "If our voluntary general offer is successful, then we will be able to achieve the vision we outlined when we launched our partial offer, to create Asia's premier regional healthcare platform," Companies Mentioned: Fortis Healthcare International

