Fortis buys 24% in Singapore's Parkway Holdings

Fortis Healthcare Ltd. announced that its wholly owned subsidiary has entered into a definitive agreement to acquire 23.9% strategic stake in Singapore's Parkway Holdings Ltd. from TPG Capital (formerly Texas Pacific Group) for Rs31.19bn (US$686mn). The deal values Parkway shares at S$3.56 each, higher than its Thursday's closing price of S$3.12. Fortis is India’s second-largest healthcare provider after Apollo Hospitals and Parkway is Asia’s biggest hospital operator by sales. The acquisition would form Asia’s largest hospital chain with over 10,000 beds across 64 hospitals in six countries. The deal will also see Fortis Chairman Malvinder Mohan Singh appointed chairman of the Parkway board. Fortis will replace TPG as Parkway’s single largest shareholder and intends to seek four seats on Parkway’s 11-member board. "The 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," Malvinder Mohan Singh said. Parkway runs 16 facilities and has 3,400 beds across six countries including Malaysia, Singapore, UAE, China and Bangladesh. A listed entity on the Singapore Stock Exchange, it has a market capitalisation of US$2.4bn.