Fortis Healthcare closes acquisition of Parkway Holdings

Fortis Healthcare has completed the acquisition of a 23.9 per cent stake in Parkway Holdings Ltd from TPG Capital, the company said in a filing with the Bombay Stock Exchange (BSE).

Fortis had, on 11 March, announced that the company through one of its wholly-owned subsidiaries, has entered into a definitive agreement to acquire 23.9 per cent strategic stake in Parkway Holdings Ltd from TPG Capital (formerly Texas Pacific Group) in an off-market deal.

Fortis Healthcare Ltd has now informed BSE that the deal has been consummated on 19 March. 

Fortis acquired a 24-per cent stake in the Singapore-based healthcare services provider for $685.3 million (Rs3,118 crore).

Parkway, with a network of 16 hospitals and 3,400 beds spread over six countries, including India, is one of Asia`s premium healthcare providers. It has a market capitalisation of $2.4 billion and is listed on the Singapore Stock Exchange. The company reported a profit of $82 million on a turnover of $700 million in 2009.

The acquisition of Parkway gives Fortis a spring board for international expansion. This is the company's third major deal in the last five years after Escorts Heart Institute and Wockhardt Hospitals.

Parkway had profit of $84 million (Rs382 crore) on sales of $700 million, with operating profit margins of 24 per cent in 2009.