Continuing the spate of small ticket acquisitions, Fortis Global Healthcare Holdings Pte Ltd has bought a 28.6 per cent stake in Colombo-based Lanka Hospitals Corporation Plc for $36.3 million. This is the fourth acquisition by Fortis Global over the past few months.
The 350-bed Lanka Hospital is listed on the Colombo stock market and is majority owned by Sri Lanka Insurance Corporation Ltd, a Government of Sri Lanka company. The hospital specialises in cardiology and cardiac surgery, neuro-sciences, orthopaedics and complex urology/nephrology procedures.
“The acquisition is in line with Fortis Global Healthcare's vision of creating a pan-Asia healthcare platform and provides an access to one of the fastest growing economies in Asia,” said a press release.
“Fortis Global Healthcare's latest acquisition, the fourth in five months, marks an important step in achieving the Singh family's vision of creating a premier global healthcare group outside India,” it added.
Smaller acquisitions
In July 2010, Fortis had quit a two-way takeover battle with Malaysia's Khazanah for acquiring Singapore-based hospital chain Parkway. Parkway was supposed to be the big platform for Fortis' Chairman, Mr Malvinder Mohan Singh's plans to create a global healthcare group outside India. But since that deal went down, he has focused on smaller acquisition through Fortis Global Healthcare, the family's international investment vehicle.
In October, Fortis acquired Hong Kong-listed Quality Healthcare Asia Ltd (QHA) for about Rs 882 crore. With this Fortis Global got a network of over 60 wholly-owned medical centres, over 500 affiliated clinics, over 40 dental and physiotherapy centres, and a private nursing agency with a database of over 3,000 nurses in Honk Kong.
Then it offered to pick up controlling stake in the Australia based Dental Corporation. Dental Corporation is the largest operator of dental practice in Australia and New Zealand with presence in 135 locations.
Fortis Global has also announced the acquisition of a cancer speciality hospital project in Singapore for Rs 115 crore. In addition to Fortis Global Healthcare, the Singh family also owns a majority stake in the Indian-listed Fortis Healthcare Ltd. Fortis Healthcare's share price was almost flat at Rs 150 on the Bombay Stock Exchange at close on Friday.
‘Tremendous opportunities'
Mr Malvinder Mohan Singh, Executive Chairman of Fortis Global Healthcare, said, “Lanka Hospitals is the first step for Fortis Global to build its healthcare business interest in one of the fastest growing economies in Asia. It is one of the most advanced and comprehensive healthcare facilities in Sri Lanka. We believe there are tremendous opportunities for the hospital's expansion and we will support the company's management in realising such growth.”