The deal between Fortis Healthcare India Ltd and Fortis Healthcare International Pte Ltd has been valued at $665 million. In September, Fortis India had announced the acquisition of the international venture and had appointed independent committee to value the deal.
A valuation of $695.7 million was recommended by a Committee of Independent Directors on the basis of fair value recommendation by Haribhakti & Co (an affiliate of BDO International), an independent valuation agency, appointed for the purpose. However, the promoters agreed to offer their investment in Fortis Healthcare International at $665 million.The acquisition will be subject to relevant regulatory approvals in certain jurisdiction and is expected to be completed by mid-December 2011.The combined entity becomes one of the largest and the fastest-growing integrated healthcare delivery networks in the globe’s highest evolving markets. Besides, it also provides Fortis Healthcare India the bandwidth to compete effectively with the other healthcare provider groups that are expanding in the region.
The company had earlier also announced that it will invest $1 billion over the next three years to expand its operations in India and globally.
The combined network will have over $1 billion revenue from 74 hospitals with more than 12,000 beds, 580 primary care centres, 188 day-care speciality centres, 190 diagnostic centres, 4,000 doctors and a base of over 23,000 employees.
The new management structure of the combined entity will be aligned to manage the global business of Fortis Healthcare, including India. Mr Malvinder Mohan Singh will be the Executive Chairman of Fortis Healthcare while Mr Shivinder Mohan Singh will be the Executive Vice-Chairman. Mr Vishal Bali will be the Global CEO of Fortis Healthcare.The Indian operations will be headed by Mr Aditya Vij as its India CEO who will focus on the Indian expansion while the international business will be headed by Mr Eng Aik Meng and will focus on all expansions outside of India. Global functional heads will manage the key business functions of the combined entity.
Fortis now has 66 hospitals and 190 diagnostic labs across India. Fortis Healthcare International owns Quality Healthcare Ltd, a primary care network in Hong Kong with 580 centres; Dental Corporation Pty Ltd – a dental care network in Australia and New Zealand with 174 centres; Fortis Speciality Hospital, an under construction specialty hospital in Singapore; a stake in 350-bed Lanka Hospitals Corporation, and the largest private pathology laboratory in the UAE.
Further, it has recently announced the acquisition of a 65 per cent stake in Hoan My Medical Corporation, one of Vietnam's largest private healthcare provider groups with over 1,100 beds across six hospitals.