The Hoan My Hospitals acquisition provides Fortis with access to Indo-China region where healthcare services sector offers significant growth opportunities.
In last eight months, Fortis Healthcare International has acquired the largest private primary care company in Hong Kong (Quality Healthcare Asia), the largest dental care company in Australia (Dental), a specialty hospital project in Singapore (under-construction) and a strategic stake in an existing hospital in Sri Lanka (Lanka Hospitals).
The Hoan My acquisition marks entry of Fortis International into Vietnam healthcare market that is growing at 10 per cent annually. This is also the group’s first acquisition of a hospital chain outside India. The acquisition is likely to be financed from internal accruals. “The family envisioned an integrated pan-Asian healthcare provider when we set up. Today, we have almost everything such as primary healthcare, diagnostics, special day-care and secondary healthcare. The Vietnam buy is an important one. We want to work with Dr Nguyen Huu Tung, who built Hoan My Medical Corporation over the years. This is Fortis Healthcare International’s sixth investment in eight months and marks an important step in consolidating its presence in the growing healthcare delivery market in Asia,” Vishal Bali, CEO, Fortis Global told FC.
Fortis Healthcare is now the largest shareholder in Hoan My Medical Corporation with 65 per cent stake while Dr Tung (the founder) as second largest shareholder with 25 per cent. Deutsche Bank Group as well as Vina Capital holds 4.9 per cent stake each in the company that is Vietnam’s largest private healthcare provider groups with 700 beds across 5 hospitals. Hoan My recorded a revenue of $23.8 million in 2009-10 and its new 200 bed tertiary care hospital is set to open in Ho Chi Minh City by November this year.
Vina Capital Group and Deutsche Bank Group in October 2009 had pumped $ 10 million each into Hoan My Medical Corporation for a combined 40 per cent stake.
Malvinder Mohan Singh, group chairman of Fortis Healthcare said Vietnam is the 13th most populous country in the world and its 89 million citizens are aspiring for better healthcare services. “Its fast growing economy is a tremendous opportunity for our group to consolidate and establish a high quality patient centric tertiary hospital network,” he said in a statement.
Singh brothers are also majority stakeholders in Fortis Healthcare that is separately listed and is a leading hospital operator in India.
Source: My Digital FC