Fortis Healthcare acquires 23.9-per cent stake in Parkway Holdings for $685.3 million

In the largest overseas deal by an Indian healthcare provider, hospital chain Fortis Healthcare has acquired private equity firm TPG Capital's 23.9-per cent stake in Singapore-based healthcare firm Parkway Holdings for about $685.3 million (Rs3,100 crore).

South-east Asia's largest healthcare provider, Parkway Holdings has a network of 16 hospitals with 3,400 beds spread across six countries, including India in Bangalore and Mumbai.

The deal, which values Parkway shares at S$3.56 each, a 14 per cent premium to its Thursday closing price at the Singapore Stock Exchange of S$3.12, will catapult Fortis Healthcare into the biggest hospital chain in Asia, with 62 hospitals having more than 10,000 beds.

It is also the largest acquisition made by Fortis, which has spent Rs909 crore to acquire10 hospitals from Wockhardt in August 2009. (See: Fortis acquires 10 Wockhardt hospitals for Rs909 crore)

After buying 5 Escorts Hospitals in 2005 for around Rs585 crore, it had acquired a 48.83-per cent stake in Chennai-based Malar Hospital last year.

The acquisition will make the Delhi-based Fortis the largest shareholder in Parkway, marginally ahead of the 23.32-per cent stake held by Malaysia's sovereign wealth fund, Khazanah Nasional Bhd.