Fortis Global Healthcare to acquire 30 per cent stake in Australian firm
23 December 2010
Fortis Global Healthcare Holdings Pte Ltd, an unlisted company owned by the former promoter group of the now sold Ranbaxy, and now the promoters of Fortis Healthcare, announced today that it will be investing about Rs450 crore to take a 30-per cent stake in Australia's Dental Corp.
''Fortis Global Healthcare is a strategic investor in this business and shall look to contribute to its growth,'' said Malvinder Singh, executive chairman of the company. ''We believe there are tremendous opportunities for Dental Corp's expansion, both in Australia and beyond, and we will support the management in realising such growth.''
Dental Corp is a leading operator of dental practices in Australia and New Zealand, and also one of the fastest-growing companies there. Its revenues jumped four-fold to over A$180 million in two years.
Fortis Global had recently acquired Hong Kong-based Quality Healthcare Asia Ltd for about Rs880 crore. Earlier in the year, the company had made an unsuccessful bid for Parkway Holdings Ltd, a Singapore-based hospital chain. However, it was out-manoeuvred by the Malaysian sovereign fund.
Fortis Global Healthcare aims to create an international healthcare business. The Hong Kong acquisition sees it control a chain comprising 60 wholly-owned medical centres, 500 affiliated clinics, 40 dental and physio-therapy centres and a private nursing agency.
According to Mark Evans, executive chairman and co-founder, Dental Corp, the Fortis investment would allow the company to expand in Australia and New Zealand and provide opportunities elsewhere in Asia.
''The investment by Fortis is a fantastic outcome for our business and follows an extensive process to introduce the best strategic partner with the vision and financial strength to assist us to deliver our long-term growth plans,'' he added.