Malaysia’s sovereign fund Khazanah launched an US$835 million ($1.18 billion) offer to gain control of Singapore’s largest private healthcare provider, Parkway Holdings (PARM.SI), setting it against India’s Fortis Healthcare (FOHE.BO).

Thursday’s offer comes just two months after hospital chain operator Fortis bought a 23.9% stake in Parkway from U.S. buyout firm TPG for US$685 million. 

A spokeswoman for Fortis Healthcare said she had no immediate comments on Khazanah’s offer. 

 

Khazanah’s Integrated Healthcare unit offered $3.78 a share for Parkway shares or a premium of 25% over Parkway’s last traded price. This will allow it to raise its stake in the Singapore firm to 51.5% in a $1.18 billion deal. Currently, it has a stake of nearly 24%. 

 

CIMB and Deutsche are financial advisers to Khazanah’s unit. 

 

In March, Fortis said it had no immediate plans to raise its stake in Parkway and planned to work with the Singapore firm in expanding across the region. Fortis Chairman Malvinder Mohan Singh was to be nominated as chairman of Parkway. 

 

“The partial offer enables Parkway shareholders to realise the value for some of Parkway shares now, at a significant premium to its last closing price, and at the same time retain an interest in its exciting future,” Ahmad Shahizam Mohd Shariff, director of Khazanah’s unit Integrated Healthcare said in a statement. 

 

Khazanah said the group plans to consolidate its existing stakes in Parkway, Pantai, Apollo and IMU to become Asia’s premium regional healthcare platform. 

 

Shares in Fortis jumped 6% in Mumbai, while trading in Parkway shares was suspended in Singapore. Parkway shares have risen 3.4% so far this year, outperforming 7% drop in the broader Singapore Straits Times Index