Fortis Healthcare, one of the country’s fastest-growing healthcare companies, has added another feather in its cap by acquiring a 24% stake in
Parkway Holdings, one of the leading healthcare companies in Asia. With this acquisition, Fortis, which has till now been on an acquisition-spree in India, is setting its global footprint.
Parkway Holdings, a Singapore-listed group, runs a network of 16 hospitals with a total capacity of 3,400 beds in Singapore, Malaysia, India, the UAE, Brunei and China. This stake buy is likely to give Fortis access to other markets across Asia. The acquisition will also increase its existing network to 62 hospitals with a combined bed strength of 10,000 beds. This will catapult the company to be the largest private healthcare player in the country.
The company is buying the stake from private investment firm TPG Capital at a value of $685.3 million (around Rs 3,124 crore). While the company has been raising funds to build its war-chest for acquisitions, it is yet to divulge the funding source for this stake buy.
Fortis has been in thick of action since past one year. For the company, this stake purchase comes on close heels of its acquisition of 10 Wockhardt Hospitals last year. Recently, it announced plans to raise around Rs 1,250 crore for inorganic expansion. This, besides the earlier fund-raising exercises through a public issue, was followed up by a rights issue.
Source : http://economictimes.indiatimes.com/Analysis/Inorganic-expansion-drive-makes-Fortis-a-potential-investment-bet/articleshow/5674143.cms
Parkway Holdings, one of the leading healthcare companies in Asia. With this acquisition, Fortis, which has till now been on an acquisition-spree in India, is setting its global footprint.
Parkway Holdings, a Singapore-listed group, runs a network of 16 hospitals with a total capacity of 3,400 beds in Singapore, Malaysia, India, the UAE, Brunei and China. This stake buy is likely to give Fortis access to other markets across Asia. The acquisition will also increase its existing network to 62 hospitals with a combined bed strength of 10,000 beds. This will catapult the company to be the largest private healthcare player in the country.
The company is buying the stake from private investment firm TPG Capital at a value of $685.3 million (around Rs 3,124 crore). While the company has been raising funds to build its war-chest for acquisitions, it is yet to divulge the funding source for this stake buy.
Fortis has been in thick of action since past one year. For the company, this stake purchase comes on close heels of its acquisition of 10 Wockhardt Hospitals last year. Recently, it announced plans to raise around Rs 1,250 crore for inorganic expansion. This, besides the earlier fund-raising exercises through a public issue, was followed up by a rights issue.
Source : http://economictimes.indiatimes.com/Analysis/Inorganic-expansion-drive-makes-Fortis-a-potential-investment-bet/articleshow/5674143.cms
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