Fortis Global Healthcare Holdings today said it would acquire the healthcare businesses of Hong Kong-listed Quality Healthcare Asia Ltd for around Rs 882 crore.
In a statement issued today, the Malvinder and Shivinder Mohan Singh-promoted firm said the deal marked an important step in achieving the promoter family’s vision of creating a premier pan-Asia healthcare business.
Fortis Global will acquire five subsidiaries of Quality Healthcare Asia (QHA). However, the elderly healthcare businesses of QHA will not be part of the deal.
An agreement to this effect was reached between the two companies on October 8.
Meanwhile, a QHA statement said, “The consideration of the transaction shall be an amount in cash equal to the aggregate sum of HK $1,521 million (the bid value) and… the base working capital (HK $20 million) subject to the working capital adjustment.”
The five subsidiaries of QHA to be acquired by Fortis are Quality HeatlhCare, Quality HealthCare Medical Holdings, Quality HealthCare Medical Services, Quality HealthCare Services and Portex.
On the development, Fortis Global Healthcare chairman Malvinder Mohan Singh said,“Quality Healthcare is a premier healthcare brand in Hong Kong and is the leading private healthcare provider there. We are believers in long-term growth prospects of the Asian healthcare space and the benefits of a world-class pan-Asian integrated healthcare delivery system.”
He said Hong Kong and China offered growth prospects for the business and the firm would look to support the team at QHA in achieving that goal.
The latest acquisition announcement comes a few months after Singh family-owned Indian hospital chain, Fortis Healthcare, sold its entire 25.37 per cent stake in Singapore’s Parkway to Malaysia-based Khazanah for an estimated Rs 3,800 crore.
At that time, Singh had said he was looking to enter into new businesses as well as expand in the Asian region.
QHA is Hong Kong’s largest private integrated healthcare service platform with specialisation in medical services and allied health services, Fortis Global said.
Source: The Telegraph