Khazanah's S$3.3-bn bid for Parkway knocks out Fortis

Malvinder SinghIndian healthcare provider, Fortis Healthcare was knocked out from its proposed largest overseas acquisition after Malaysian sovereign wealth fund Khazanah today launched a full takeover offer for Singapore's Parkway Holdings for S$3.5 billion ($2.53 billion).

The two-month see-saw battle for Parkway, South-east Asia's largest healthcare provider ended today after Fortis accepted Khazanah's offer of S$3.95 ($2.88) per share for the shares it does not already own in Parkway, valuing the 16 hospital chain operator at S$3.3 billion.

Khazanah, which has $28 billion of assets under management and currently owns 23.9 per cent of Parkway, had planned to increase its stake in Parkway to 51.5-per cent stake in May and made a partial offer of $835-million or S$3.78 per share.

Fortis, led by Malvinder Mohan Singh, had trumped Khazanah's partial offer by launching a full offer early this month for Parkway of S$3.80 per share or S$3.2 billion (See: Fortis trumps Khazanah with $3.1-billion offer for Parkway), accepted Khazanah's full offer.

"Fortis Global healthcare (Mauritius) Ltd, a wholly-owned subsidiary of Fortis Healthcare, has provided an irrevocable undertaking to Integrated Healthcare Holdings (IHHL) to accept the voluntary general offer for all its shares," IHHL today said in a filing with the Singapore Exchange.

Shares of Fortis rose by 6 percent in Mumbai trading following the news that the company abandoned Parkway acquisition.