Fortis to consider continents beyond Asia with Parkway deal

16906 Investors following Fortis Health. Share this News with them.

0

Like this story, share it with millions of investors on M3

Fortis to consider continents beyond Asia with Parkway deal

Fortis Healthcare has a strategic blue print of growth, the management said, adding that the first step in the international space would be to have strong presence in Asia and the next phase would be to go beyond Asia.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Fortis may steal the thunder in healthcare space: Udayan Fortis Healthcare adds nearly 6 lakh shares in OI Fortis Healthcare to buy 24% in Parkway Holdings for $685m ALSO READ See latest News about Fortis Health See previous management interviews See what other Experts & Brokerages are saying about Fortis Health Nifty BSE | NSE 29/05/12 Are Mutual Funds betting on Nifty?

The market has been abuzz with news of Fortis Healthcare , a fast-growing healthcare company planning to acquire 24% stake in Singapore-based healthcare firm Parkway Holdings for USD 685.3 million. CNBC-TV18 reported on Thursday that the company was planning to acquire this stake from TPG Capital. RBS, Goldman Sachs were advisors to TPG in the deal. It was also learnt that Fortis had got control of Parkway Holdings without an open offer.

The company's management including Chairman Malvinder Singh and Managing Director and Chief Executive Officer Shivinder Singh cleared the air by confirming the news while addressing a press conference today.

The company has a strategic blue print of growth, the management said, adding that the first step in the international space would be to have strong presence in Asia and the next phase would be to go beyond Asia. "This is where the partnership and the strategic share holding that we have in Parkway holding fits into our overall strategy".

Further, the management said, "We are considering continents beyond Asia with Parkway partnership which will be funded by internal accruals, rights issue and foreign currency convertible bonds (FCCBs)."

Post this deal, combining a large network, Parkway Holdings and Fortis Healthcare would have 62 hospitals operational, with over 10,000 beds, and close to 3,000 medical talented pool, in terms of doctors along with a significantly large employee base in eight countries in Asia.

Two members, including Malvinder Singh from the Indian major's board would relocate to Singapore to be a part of the Parkway board, which currently has 12 board members, the management said. "This will not only give the commitment that we have but it would also ensure the physical presence and the commitment from our side to build and leverage the strong opportunity that Fortis and Parkway can combine and unleash and therefore we are creating a very strong platform for healthcare delivery."

"Parkway is looking at more projects in India, and we would like to leverage its holding brand," they said, adding that the acquisition was not for cost optimisation but to leverage growth.

For the company's complete address to the press, watch video.