Home THE DAILY EDGE Business Rewarding failure for Fortis Healthcare
Rewarding failure for Fortis Healthcare
Written by The Edge   
Tuesday, 27 July 2010 13:06
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Sometimes, failure pays. Walking away from bidding war for control of Singapore-based Parkway Holdings (P27.SG), Fortis Health Care (532843.BY) finds itself $85.6 million richer, says Dow Jones.

Fortis will sell its 25% Parkway stake, bought in March, to Malaysian sovereign wealth fund Khazanah Holdings, which won bidding war Monday, with an offer to buy out Fortis, Parkway’s other investors for $2.56 billion.

Taking Khazanah’s money is wise, even if Fortis must forgo ambition to become Asia’s largest hospital chain; its small stake was expensive enough, while Parkway’s appeal to investors — growth in healthcare demand in Singapore and Malaysia — arguably less compelling than Fortis’ home market of India.

Still, loss hasn’t dampened Fortis’ spirit, with management reiterating focus on Singapore for future growth. Investors should hope for a more tempered approach next time.


 

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