Parkway Holdings

Parkway Holdings

It is the first important acquisitions abroad by Indian companies in the area of services in the area of health care.

Fortis Health Care Limited (owned by former Ranbaxy promoters) is to obtain a 23.9% stake in Singapore-based, health-care services company, private equity biggie Parkway Holdings, Texas Pacific Capital for about $ 685 million. It seems that the agreement was signed at 14% bonus on the value of the share of compensation from the closing price of the Singapore Stock Exchange listed Parkway, according to estimates VCCircle.

Other big investors in the Parkway include Treasury Nacional, and the sovereign wealth fund in Malaysia, and this is the second largest shareholder in the Parkway with the 23.32% of the shares of the bank.

In addition to being the first major overseas acquisition by an Indian company in the area of services in health care, and that the deal made the biggest deal by an Indian company since 2008. The big deal was issued by the oil and natural gas limited company $ 2.6 billion (Rs 12,428 crore) takeover of Russia-focused Imperial Energy me in August 2008.

Parkway Holdings Limited is one of the area leader in providing health care services, with a network of 16 hospitals and more than 3,400 families in various parts of Asia, including Singapore, Malaysia, Brunei, India and China. It is interesting, Parkway also in a joint venture with Fortis, Apollo Hospitals, Kolkata for his rival Apollo Gleneagles Hospital. Parkway is also developing a hospital in Mumbai in founding a joint venture with Koncentric of Investments Limited.

In Singapore, owned by Parkway Group Pte Ltd for health care and Parkway Hospitals Singapore Pte Ltd, which operates three health care providers in Singapore is higher: Gleneagles, Mount Elizabeth and East Parkway hospitals. For the year ended December’09, Parkway Holdings had revenues of $ 700 million, with net profit of $ 89 million.

The Fortis share price rose 4.8 percent to close at 178.35 in a market in Bahrain on Thursday, giving it a market value of Rs 5,659 billion rupees ($ 1.2 billion). Parkway shares rose 2.6 percent to S $ 3.12 in Singapore exchange, which gave them in terms of market value of $ 2.5 billion. At this price, and the share of compensation worth 602 million dollars (about 16 times EBIDTAR) for $ 685 million to be paid Fortis. Could not be immediately confirmed whether Fortis will want to buy more.

Fortis health care, and this is the second big deal in less than a year and the biggest yet. Last August, it bought 10 hospitals financially troubled Wockhardt Group for about $ 187 million in India.

Recently announced that Fortis plans to raise Rs 1,250 billion rupees (275 million dollars) for hospitals. It’s got the board of directors agreed to raise money through preferred shares and overseas equities, bonds in foreign currency. “It is better to keep the warchest ready for any opportunity rather than start scouting for the money when we need it, and we know what we want and we know what is available, and we want what is complementary for us” Shivinder Mohan Singh as saying in news reports last month .

Fortis, which currently manages 38 hospitals, and indicated that they were looking forward to the proceeds of the $ 1 billion by 2015, from about 350 million dollars now. Fortis has raised Rs 1,000 billion rupees through a rights issue last September.