Fortis Healthcare Ltd, one of India’s largest healthcare companies, announced it has signed a definitive agreement with Integrated Healthcare Holdings Limited, the investment arm of Khazanah National to sell its entire stake in Parkway Holdings Limited (Parkway) at Singapore dollar 3.95 per share in cash.

In March of this year, Fortis had purchased 269.5 million shares (23.9 per cent strategic stake) in Parkway from TPG Capital in an off market deal at Singapore dollar 3.56 per share. Besides this, it purchased additional 13.2 million shares through Open Market Purchases at approx. Singapore dollar 3.22 per share, thereby making the investment in 282.7 million shares at approx. Singapore dollar 3.54 per share.

Fortis and Parkway chairman Malvinder Mohan Singh said after considered and deliberate discussions, it was decided to divest the stake in Parkway and have reached an agreement with Khazanah to accept their voluntary general offer. ‘It was made after careful assessment of the intrinsic value of Parkway and in light of other growth opportunities available to us across the region and globally’ he added.

Commenting on the way forward, post-Parkway, he said, ‘Our vision for a global healthcare service provider which could cross leverage learning’s across geographies, optimise cost and provide the best quality to the benefit of the patient has not changed.

In fact our experience has made us a more astute healthcare player. We hope to re-invest the value unlocked from this experience to the advantage of our stakeholders, and to support our vision to become a global healthcare provider. We are long-term players in the healthcare business and we understand this business.

We are committed in achieving our growth objectives and work towards enhancing shareholder value. We will study the secondary listing of Fortis on the Singapore Exchange.’

UNI