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Fortis to buy Singapore arm, invest $1 bn

Source: PTI
September 19, 2011 17:28 IST
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Fortis Healthcare India said on Monday it will invest $1 billion in the next three years for expansion in India as well as global markets.

"We will invest $1 billion in medium term (3 years) to propel growth and expansion in Indian and global markets," Fortis Healthcare Group Chairman Malvinder Mohan Singh said in New Delhi.

Besides, the company announced that it will acquire its Singapore-based arm Fortis Healthcare International Pte Ltd from a firm owned by its promoters, the Singh brothers, as part of consolidation of domestic and global operations.

"Our combined entity will leverage competitive strengths and realise synergies to benefit all the operations, especially leveraging the group's enormous talent in healthcare," Fortis Healthcare India Managing Director Shivinder Mohan Singh said.

This will further accelerate Fortis' growth in the entire region and will help create a premier healthcare services network in pan Asia-Pacific region, he added.

The consolidation of the two entities would create a firm with consolidated revenues of $1 billion, with each entity contributing $500
million each, he said.

Fortis International, which was set up last year to pursue overseas business, has made seven acquisitions in 10 markets, including Hong Kong-based Quality HealthCare Asia.

It also bought Australia's Dental Corporation Holdings, and Sri Lanka's Lanka Hospitals Corp Plc, among others.

In a meeting held on Monday, the board of directors of Fortis Healthcare India approved the acquisition of Fortis Health care International from RHC Financial Services (Mauritius) Ltd.

RHC Financial Services is a company owned by the promoters of Fortis Healthcare India - Malvinder Mohan Singh and Shivinder Mohan Singh.

"The deal will be an all cash deal and hopefully this calender year we will be able to close the transaction," Fortis Healthcare Group Chairman Malvinder Mohan Singh said.

The company said: "The valuation will be advised by an independent valuation agency, to be appointed by a committee of independent directors for the purpose".

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