
Jun
07
Fortis and ING Making Marketplace Movements
Posted on Jun 07, 2012 by Sergio Ulloa (G+)
Fortis Healthcare has received board approval for their plans to list their Religare Health Trust on the Singapore stock exchange. Meanwhile, the bidding process for the Asian insurance business of ING Groep has moved into the second stage, with a number of contenders making the short list. As a business trust, the Religare Health Trust will contain assets from Fortis' radiological testing and outpatient clinical services and will focus its investments in healthcare, medical-related services and assets around Asia, Australia, New Zealand and other emerging markets. The listing of Religare Health Trust has been approved by the Singapore Exchange on Friday and is expected by Fortis to raise approximately US$ 360 million. The listing of Religare Health Trust on the Singapore Exchange will be the second by an Indian business after Indiabulls Properties Investment Fund did so in 2009. Fortis is waiting for appropriate market conditions to launch the IPO, however, once finished Fortis should hold 33 percent of the trust with the remaining shares going to international investors. In the bid for some of the Asian assets of ING's insurance business, at least four companies have made the shortlist for the second round of bids. Reports have indicated that Manulife Financial, AIA, Korea Life Insurance and KB Life Insurance have all been given the opportunity to make binding, second-round bids. ING must sell off its global asset management and insurance businesses as part of their bailout agreement with the EU in 2008, in which they received US$7 billion from in government loans. However, given the regional issues in Europe, ING has decided to sell its Asian and European insurance and asset management divisions separately. Reports indicate that ING is seeking between US$6 to 7 billion for their Asian insurance business, while one analyst from Rabobank International, Cor Kluis, has estimated that ING will garner close to €4.6 billion (US$5.8 billion) after paying down some of their debt. ING's sale of their Asset Management has also progressed to the second stage of bids. The asset management business has been valued at approximately US$500 million, and similarly to ING's insurance business, has attracted the attention of Manulife and AIA among other companies. The procurements of ING's Asian assets are seen as a great way for a number of companies to expand business into new countries or grow market share in locations where they may already have a foothold. Companies Mentioned Fortis Healthcare


