Fortis to sell RadLink-Asia to Malaysia's IHH Healthcare for $108mn
13 September 2014
Fortis Singapore Pte Ltd, a subsidiary of Fortis Healthcare International, is divesting its entire stake in its diagnostic and molecular imaging arm RadLink-Asia Pte Ltd, the parent company said in a statement on Friday.
Malaysia's IHH Healthcare Bhd, Asia's largest hospital operator by stock market value, will buy the assets for S$ 137 million (around $108.5 million).
The deal will be successfully closed following the necessary statutory and regulatory approvals as per local requirements," Fortis Healthcare said in a statement.
J P Morgan and Religare Capital Markets acted as financial advisors to Fortis for the transaction.
Fortis, which has been on a selling spree since 2013, is planning to focus on India now. The company is in the process of expanding its hospital chain across the Indian market. During financial 2014, Fortis added over 800 beds to its network in India.
In May 2013, it launched the Fortis Memorial Research Institute in Gurgaon and in January 2014, it commissioned a 260-bed facility in Ludhiana. A large facility in Chennai (Arcot Road) is also nearing completion and is expected to be commissioned in the next few months.
Malvinder Singh, executive chairman, and younger brother Shivinder Singh, executive vice-chairman, Fortis Healthcare Ltd, said, "This is in line with our strategic decision to intensify our focus on our core hospital and diagnostics business in India. Our international healthcare businesses have all done well. The significant value that we have created, is now being unlocked and will be ploughed back to strengthen our growth in India."