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Rediff.com  » Business » Fortis Global to acquire 30 pc stake in Aus firm

Fortis Global to acquire 30 pc stake in Aus firm

December 22, 2010 16:31 IST

Fortis Global Healthcare Holdings on Wednesday said it will acquire 30 per cent stake in Australia's Dental Corporation for about AUD 100 millions (about Rs 450 crore).

The company, promoted by Malvinder Mohan Singh and Shivinder Mohan Singh, will get for AUD 100 million nearly 30 per cent stake in Dental Corp, subject to shareholder and regulatory approvals, Fortis Global Healthcare Holdings said in a statement.

"Their model of business partnership with principal dentists is a significant point of differentiation driving the success of the business and its rapid growth, while being the most effective way to manage high performing professionals," Fortis Global Healthcare Executive Chairman Malvinder Mohan Singh said.

The company is a strategic investor in this business and will look to contribute to its growth, he said, adding that Fortis will support Dental Corporation's management and professionals in realising such growth.

Dental Corporation, one of Australia's fastest-growing companies, was founded in October 2007 to acquire and partner with high-quality general and specialist dental practices. Its revenue has grown more than four-fold from AUD 40.3 million in FY08 to AUD 182.6 million in FY10, despite the global financial crisis.

It now owns 135 practices located across Australia and New Zealand. Dental Corporation Executive Chairman and Co-founder Mark Evans said, "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 said the investment will allow Dental to continue to expand in Australia and New Zealand and should present opportunities in Asia through the Fortis network.

The company's acquisition of stake in Dental Corporation follows its acquisition of Hong Kong based Quality Healthcare in November this year.

Earlier this year, Fortis Healthcare, in which Singh brothers have a majority stake, was entangled with Malaysia's sovereign fund Khazanah for the acquisition of Singapore-based Parkway Holdings.

 

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