Fortis to buy 65-% stake in Vietnam hospital chain for $64 million

Singapore-based Fortis Healthcare International Pte Ltd, promoted by the 'Ranbaxy brothers' Malvinder Singh and Shivinder Singh, said on Wednesday that it will buy a 65-per cent stake in hospital chain Hoan My Medical Corp for $64 million (Rs289 crore).

This will be Fortis group's first acquisition of a hospital chain outside of India, the company said in a statement and would enable it an entry into the growing Vietnamese healthcare market.

Hoan My Medical, established in 1997, is one of Vietnam's largest private healthcare groups with five hospitals in operation and two more to be commissioned soon. It posted revenues of $23.8 million in fiscal 2010.

Hoan My Medical will open its new 200 bed state-of-the-art tertiary care hospital in Ho Chi Minh City by November 2011. The group also has a strong foundation of 450 empanelled physicians.

''This acquisition is an important step for Fortis Healthcare International to establish its presence in one of Asia's fastest-growing regions,'' said group chairman Malvinder Mohan Singh in a release. ''Vietnam is the 13th most populous country in the world and its 89 million citizens are aspiring for better healthcare services.''

''Hoan My Medical Corporation has a strong foundation in Vietnam which we will strengthen further with our group's experience of more than 20 years in operating tertiary care hospitals.'' he added.