The deal is expected to be completed in October 2013.
Fortis Healthcare International Pte Ltd, a subsidiary of Fortis Healthcare Ltd (Fortis) today announced its decision to sell its 100% stake in Altai Investments Limited, the holding company for Quality Healthcare (QH), Hong Kong, to Bupa, for US$ 355million.The offer price is reflective of the value and efficiencies added through improved operations and the introduction of new and specialised medical centres while QH has been a part of the Fortis group.
The deal is expected to be completed in October 2013.
Malvinder Singh, Executive Chairman, and Shivinder Singh, Executive Vice Chairman, Fortis Healthcare Limited, said, “The divestment clearly aligns our business with our stated priorities. We have taken a strategic decision to intensify our focus on our core hospital and diagnostic business in India with a clear path to profitability. The divestment also enables us to further strengthen our balance sheet and substantially improve our net debt equity ratio, creating further room for growth.”
Fortis has demonstrated remarkable fiscal prudence and slashed its debt in the preceding 12 months. Post QH, the company’s net debt equity position is expected to be less than 0.3x down from 1.6x as on 30th Sept 2012. The company continues to evaluate its portfolio of assets to ensure the right alignment and strategic fit.
In the current year, Fortis will add over 1,000 beds from Greenfield projects in India. In May 2013, it launched its flagship, the Fortis Memorial Research Institute in Gurgaon. Two more projects, one each in Ludhiana and Chennai (Arcot Road) are nearing completion and will be commissioned in the next few months.
Following the QH divestment, the India revenue will account for nearly 95 % of the Company’s total revenue. With the addition of new capacity and performance improvements, the company expects its India business to exhibit a robust operating performance going forward.
J. P. Morgan and Religare Capital Markets acted as financial advisors to Fortis for this transaction.
Fortis Healthcare International Pte Ltd, a subsidiary of Fortis Healthcare Ltd (Fortis) today announced its decision to sell its 100% stake in Altai Investments Limited, the holding company for Quality Healthcare (QH), Hong Kong, to Bupa, for US$ 355million.The offer price is reflective of the value and efficiencies added through improved operations and the introduction of new and specialised medical centres while QH has been a part of the Fortis group.
The deal is expected to be completed in October 2013.
Malvinder Singh, Executive Chairman, and Shivinder Singh, Executive Vice Chairman, Fortis Healthcare Limited, said, “The divestment clearly aligns our business with our stated priorities. We have taken a strategic decision to intensify our focus on our core hospital and diagnostic business in India with a clear path to profitability. The divestment also enables us to further strengthen our balance sheet and substantially improve our net debt equity ratio, creating further room for growth.”
Fortis has demonstrated remarkable fiscal prudence and slashed its debt in the preceding 12 months. Post QH, the company’s net debt equity position is expected to be less than 0.3x down from 1.6x as on 30th Sept 2012. The company continues to evaluate its portfolio of assets to ensure the right alignment and strategic fit.
In the current year, Fortis will add over 1,000 beds from Greenfield projects in India. In May 2013, it launched its flagship, the Fortis Memorial Research Institute in Gurgaon. Two more projects, one each in Ludhiana and Chennai (Arcot Road) are nearing completion and will be commissioned in the next few months.
Following the QH divestment, the India revenue will account for nearly 95 % of the Company’s total revenue. With the addition of new capacity and performance improvements, the company expects its India business to exhibit a robust operating performance going forward.
J. P. Morgan and Religare Capital Markets acted as financial advisors to Fortis for this transaction.
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