Fortis is back on the Asia trail. Fortis Global Healthcare Holdings Pte Ltd plans to acquire the healthcare businesses of Hong Kong-listed Quality Healthcare Asia Limited (QHA) for HK$1.51 billion or $196 million. The deal by Fortis Global, owned by Fortis Healthcare promoters Malvinder and Shivinder Mohan Singh, comes after the Parkway Holdings acquisition fell through earlier this year.
The deal gives Fortis Global a network of over 60 wholly-owned medical centres, 500 affiliated clinics, 40 dental and physiotherapy centres, and a private nursing agency with a database of over 3,000 nurses. For the financial year ending 2009, QHA recorded consolidated revenues of $131 million and EBIDTA of $13.1 Million. The deal does not include QHA's elder healthcare business.
In a statement, Fortis Global said, it is the family’s vehicle to create a pan-Asian international healthcare network which will have hospitals, diagnostics, primary care and other healthcare segments.
Fortis had bought a 24% stake from TPG Capital in Singapore's Parkway Holding for $685 million in March but was embroiled in a bidding war with Malaysian sovereign wealth fund Khazanah. The firm ended up selling its stake for a $85 million profit by July.
The Singhs also have a controlling stake in Fortis Healthcare, one of India's largest hospital chains. The share prices of Fortis Healthcare shot up by more than 3% in morning trade today before coming down to Rs 173.50 levels.
The deal involves acquisition of 5 units of QHA called Quality HealthCare Limited (BVI), Quality HealthCare Medical Holdings Limited (HK), Quality HealthCare Medical Services Limited (HK), Quality HealthCare Services Limited (BVI) and Portex Limited (HK).
“Fortis Global Healthcare will be our vehicle of growth for international healthcare businesses outside India, allowing Fortis Healthcare in India to continue to focus on the tremendous growth in the Indian hospital business," said Malvinder Mohan Singh, Chairman of Fortis Global Healthcare. "We believe that there are tremendous opportunities for growth in the Quality Healthcare businesses, both in Hong Kong and also potentially in China and will look to support the management and professionals of the Quality Healthcare team in realising such growth.”