Fortis assured of bank funds for Parkway takeover bid: report
21 June 2010
Indian banks have assured Fortis Healthcare they would lend the $2 billion that the hospital chain may need for a takeover battle for Singapore's Parkway Holdings, the Economic Times reported today.
Singapore's securities regulator has given Fortis until 30 July to say whether it intends to make a full offer for hospital operator Parkway, the subject of a partial takeover bid by Malaysian sovereign fund Khazanah.
Fortis, which already holds roughly 25 per cent of Parkway, will have to offer over $2.3 billion to buy the rest of it.
Lenders such as State Bank of India, Axis Bank, Punjab National Bank and Yes Bank have given their "in-principle" commitment for the loan, the Economic Times said, citing a person close to the matter.
Citing an unnamed Yes Bank executive, the newspaper said the private lender had committed Rs500 crore ($108 million) to Fortis if the Indian firm decides to place a counter bid for Parkway Holdings.
Officials at Fortis and the banks could not be reached for comment.
Fortis had wanted to build a controlling stake in the Singapore company before Khazanah made a surprise $835 million offer last month to lift its stake from 23.5 per cent to 51.5 per cent.