Fortis Healthcare, one of the leading hospitals chains in India, dreaming to build a healthcare empire outside India has acquired a 29 percent stake in Lanka Hospitals Plc, formerly Apollo, for a sum of Sri Lanka rupees 4 billion.
Local brokerage Bartleet Mallory Stockbrokers informed the Colombo Stock Exchange yesterday that its client Fortis Global Healthcare Holdings acquired 64,120915 shares representing 28.6 percent of Lanka Hospitals Plc at a price of Rs.62 per share.
Fortis Global Healthcare Holdings is the private arm of the publicly listed Fortis Healthcare Limited, which the promoters of Fortis, Malvinder and Shivinder Singh have been using when investing outside India. The Singh brothers were believed to have earned about Indian rupees 10,000 crores from sale of their family stake in Ranbaxy Laboratories to Daiichi Sankyo of Japan.
The seller of the 28.6 percent stake of Lanka Hospitals was Distilleries Company Plc, controlled by business tycoon Harry Jayawardena. Harry J has been scouting to sell the stake since he lost control of Sri Lanka Insurance, following a Supreme Court ruling, through which he controlled Lanka Hospitals.
In fact Apollo Hospital, the largest hospital chain in India, was the first to enter Sri Lanka, following an invitation from the Sri Lankan government to set up a modern hospital in the country.
However, Apollo Hospitals had to exit the joint venture in 2006, after failing to stave off a hostile takeover bid by Harry J. The Apollo Hospital in Colombo was renamed as Lanka Hospitals, after the change in ownership from Harry J to the government-controlled institutions.
Presently the Sri Lankan government through Sri Lanka Insurance and Property Development Limited, which is a subsidiary of state banking giant Bank of Ceylon holds nearly 65 percent of Lanka Hospitals. The hospital has a very small free float amounting to 7.5 percent of issued shares. Currently the all powerful Sri Lanka's Defence Secretary Gotabhaya Rajapaksa serves as the Chairman of the hospital.
"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 facility in Sri Lanka. We believe there are tremendous opportunities for the hospital's expansion and we will support the company's management to achieve such a growth." Malvinder Mohan Singh, Executive Chairman of Fortis Global Healthcare said in a press statement.
Meanwhile, this is the Fortis' latest acquisition, the fourth in five months. Fortis recently acquired the largest private primary care company in Hong Kong, invested in the largest dental care company in Australia and announced the acquisition of a cancer specialty hospital project in Singapore.
"The acquisitions mark an important step in achieving the Singh family's vision of creating a premier global healthcare group outside India," the press statement further said.
Local analysts commenting on the deal said, this could well be the initial investment of Fortis in passing the 30 percent ownership threshold to acquire the control of the hospital.
It is believed that back in 2009, Fortis held talks to acquire the Asiri Hospitals chain owned by Softlogic Chairman Ashok Pathirage, in a bid to enter the Sri Lankan healthcare sector.
source - www.dailymirror.lk
No comments:
Post a Comment