Malaysian state investor Khazanah is poised to offer to buy all outstanding shares of Singapore's Parkway Holdings (PARM.SI), valuing it at $3.3 billion, sources with knowledge of the deal said.

Khazanah’s latest offer will be around $3.95 per share of the Singapore healthcare firm in response to the $3.80 offered by rival suitor Fortis Healthcare (FOHE.BO) of India, the sources said.  

 

If confirmed, the purchase will be the Malaysian state investor's biggest acquisition overseas. 

 

Parkway shares were suspended on Monday pending the announcement by Khazanah and closed at $3.88 on Friday. The price of $3.95 would be the highest for its shares since October 2007. 

 

”It will be a general offer,’ said one of the sources who has direct knowledge of Khazanah’s latest bid. Analysts said Fortis could walk away and cash in its 25% holding in Parkway. 

 

“I think at a certain stage they (Fortis) would throw in the towel,” said Terence Wong, research head at DMG and Partners. 

 

“It is not that it would go to $4.50 -$5.00.”

 

Khazanah and Fortis each currently own about 25% of Parkway, which runs hospitals in Singapore, Malaysia, India and China, and want to use the firm to spearhead their regional expansion in the booming healthcare market. 

 

Analysts had expected that Khazanah may have to pay more than $4.00 a share for Parkway to fend off Fortis. Khazanah, which has a portfolio of US$28 billion ($38.3 billion), is also looking to raise loans through DBS (DBSM.SI), UOB (UOBH.SI) and OCBC (OCBC.SI). 

 

Fortis controls Parkway with four of its 12 directors, including chairman Malvinder Singh. Khazanah has just under 24% and two seats on the board. 

 

Deutsche Bank (DBKGn.DE) and CIMB (CIMB.KL) are advising Khazanah and Fortis is being advised by Macquarie (MQG.AX) and RBS (RBS.L). Morgan Stanley (MS.N) is acting as an independent adviser to Parkway.