Fortis Healthcare (India) is paying $665 million to acquire Singapore-based Fortis Healthcare International, a business run by the Indian company’s founders Shivinder Singh and Malvinder Singh. The plan is to consolidate local and overseas operations. Fortis Healthcare India has agreed to acquire 100% of Fortis Healthcare International from RHC Financial Services Mauritius, for a purchase consideration of $665 million.
Fortis Healthcare (India) is paying $665 million to acquire Singapore-based Fortis Healthcare International, a business run by the Indian company’s founders Shivinder Singh and Malvinder Singh. The plan is to consolidate local and overseas operations.
Fortis Healthcare India has agreed to acquire 100% of Fortis Healthcare International from RHC Financial Services Mauritius, for a purchase consideration of $665 million. RHC Financial Services Mauritius is owned by the Singh brothers-Malvinder and Shivinder. A valuation of $695.7 million was recommended by a committee of independent directors but the brothers agreed to offer their investment in Fortis Healthcare International at a price of $665 million, as they decided that they did not want to look at making a profit from this transaction. The acquisition is expected to be completed by mid- December 2011 subject to relevant regulatory approvals in certain jurisdictions.
This acquisition is a part of consolidation of domestic and global operations of the healthcare group, which gave up the bid to control Singapore-based hospital chain Parkway Holdings to Malaysia’s Khazanah in July last year. The combined revenue is estimated to be more than $1 billion.
The Singh family set up the Singapore-based firm in October 2010 to drive the group’s international expansion following last year’s aborted bid by Fortis Healthcare (India) for Singapore hospital chain Parkway Holdings Ltd. The local and overseas entities have been growing through acquisitions and by setting up new hospitals as demand for health-care services rises.
Fortis Healthcare India and its joint venture partner International Centre for Robotic Surgery will set up ten robotic surgery centres across India in the next 24 months. Both partners have an equal stake in Fortis ICRS, which has just opened the robotic surgery centre at Fortis Escort Heart Institute in Delhi. The centres will be set up within Fortis Hospitals in Bangalore, Gurgaon, Mumbai, Chennai, Kolkata and in smaller cities including Mohali and Jaipur. Fortis ICRS centres will offer robotic surgeries in cardiac, thoracic, urology, gynaecology, general, head and neck and orthopaedics.
After the consolidation, the combined network will have 74 hospitals in ten countries, with 12,000 beds, 580 primary care centres, 188 day care speciality centres, 190 diagnostic centres and 23,000 employees. Fortis Healthcare India has 66 hospitals and 190 diagnostic labs across India.
1018 Omani nationals obtained medical visas from the Indian Embassy last year, and 778 people took medical attendant visas to accompany them during their treatment period in India, says the Indian Embassy.
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