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Fortis Healthcare offered to buy all of Parkway Holdings for $3.80 a share, topping a partial bid by Khazanah Nasional Bhd. for control of Asia’s largest hospital operator.
Fortis’s offer, made in a statement today, values Singapore-based Parkway at $4.3 billion based on Bloomberg calculations. It is 0.5% more than the $3.78- a-share bid by Khazanah, which sought to raise its stake to 51.5%. Parkway shares closed at $3.57 on the Singapore exchange yesterday and were halted from trading today pending the announcement.
Fortis’s offer, made in a statement today, values Singapore-based Parkway at $4.3 billion based on Bloomberg calculations. It is 0.5% more than the $3.78- a-share bid by Khazanah, which sought to raise its stake to 51.5%. Parkway shares closed at $3.57 on the Singapore exchange yesterday and were halted from trading today pending the announcement.
Fortis, run by brothers Malvinder and Shivinder Singh, and Khazanah, Malaysia’s state investment company, are vying for control of Parkway, operator of 16 hospitals in Asia with more than 3,400 beds. Profit from Parkway’s hospitals business expanded 16 percent in the first quarter, spurred by increasing demand worldwide for private health care.
Parkway Chief Executive Officer Tan See Leng said in February the company may make acquisitions in China to tap rising demand for health care in the world’s most populous nation. Annual sales have more than doubled to $62.6 million since 2007 in China, where the government is spending US$125 billion ($174.9 billion) to start a national health insurance system and is encouraging private investment in medical services.
New Delhi-based Fortis, India’s second-biggest hospital operator by market value, paid $959.4 million in March for 23.9% of Parkway, its biggest acquisition to date. The stake was a “big step closer to our vision of establishing a global health-care delivery network,” Malvinder Singh, 37, Fortis’s chairman, said at the time. He subsequently became chairman of Parkway.
FORBES LIST
Malvinder and his 34-year-old brother, Shivinder, who is managing director of Fortis, have a net worth of US$3.2 billion, making them the world’s 297th-richest people and India’s 16th- richest, Forbes magazine said in March.
In 2008, the Singh family sold their 35% stake in Ranbaxy Laboratories, India’s biggest drugmaker, to Japan’s Daiichi Sankyo Co. for about US$2 billion. Malvinder remained until May 2009 as chief executive officer of the company his grandfather bought in 1952.
Fortis is India’s second-biggest hospital operator by market value after Apollo Hospitals Enterprise.
