Fortis makes $2.3b bid to ward off Khazanah threat
The duo of Mr Malvinder Singh and Mr Shivinder Singh and their promoted company Fortis have launched an open offer to buy the remaining 74.73 per cent stake in Parkway for $2.3 billion. It is offering to buy the shares in Parkway for S$3.80 (Singapore dollars) a share as compared to S$3.78 offered by Khazanah. The duo on
Thursday launched a multi-billion dollar counter offer to save their dream project — Singapore-based hospital chain Parkway from a hostile takeover attempt by Malaysia’s state investment company Khazanah Nasional Bhd.
Last month Khazanah had offered $839 million to increase its stake in Parkw-ay from 23 per cent to 51.5 per cent. Currently, Fortis is the single largest stakeholder in Parkway with around 25.3 per cent stake. “We see great value in the Parkway brand and believe that Fortis and Parkway together will become a world-class global healthcare organisation,” said Mr Malvinder Mohan Singh, the chairman of Parkway and Fortis.
The Singh family had extensive plans to expand the operations of Parkway before its control was challenged by Khazanah.
Analysts expect a counter offer from Khazanah. However, SMC Capitals equity head, Mr Jaganna-dham Thunuguntla, said that Fortis had placed itself in such a fashion that it has the flexibility to go forward with the offer or back out.
In March, Fortis had acquired 23.9 per cent stake in Parkway Holdings from US firm TPG Capital for $685 million. This deal made Fortis the biggest private hospital chain in Asia and gave it a foothold in Singapore and Malaysia.
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