Fortis Global Acquires Sri Lanka Hospitals

Fortis  Healthcare, India’s  one of the biggest Healthcare Chains   has acquired  Sri Lanka based  Hospital  Increasing its footprint in Asia, Fortis Healthcare has acquired a 29% stake in Colombo-based Lanka Hospitals Corp for around Rs 163 crore ($36.3 million). This comes close on the heels of the group’s acquisition of a cancer hospital in Singapore last month.

This is the first step for Fortis Global Healthcare to build its healthcare business interest in one of the fastest growing economies in Asia,” Fortis Global Healthcare Executive Chairman Malvinder Mohan Singh said in a statement.Lanka Hospitals runs a 350-bed hospital and is majority owned by Sri Lanka Insurance Corp., a government entity, and is a tertiary care healthcare delivery provider and one of the largest hospital groups in Sri Lanka. The 350-bed hospital is majority-owned by Sri Lanka Insurance Corporation, a Sri Lanka government company.

The Lanka Hospitals Corporation Plc offers health care services in Sri Lanka. The company provides emergency, cardiac thoracic, dental and eye clinic, kidney care centre, fertility centre, health check, mother and baby care, diagnostic, cosmetic centre, oto-rhino-laryngology, blood bank, and general surgery services. It also offers out patients department, on call medical consultant, and 24 hour pharmacy services, as well as support services. The hospital specializes in cardiology and cardiac surgery, neuro-sciences, orthopaedics and complex urology/nephrology procedures.The company was incorporated in 1997 and is based in Colombo, Sri Lanka. The Lanka Hospitals Corporation Plc is a subsidiary of Sri Lanka Insurance Corporation Limited.

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.

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 facility in Sri Lanka. We believe there are tremendous opportunities for the hospital’s expansion and we will support the company’s management inrealising such growth”.

Fortis Healthcare’s latest acquisition, the fourth in five months, marks an important step in achieving the Vision of Fortis   to  create a premier global healthcare group outside India. In the last four months, Fortis has acquired the largest private primary care company Hong Kong, invested in the largest dental care company in Australia and announced the acquisition of a cancer speciality hospital project in Singapore.

Image Source:Lankahospitals

Fortis Global Healthcare Holdings will acquire a majority stake in Australia’s Dental Corporation Holdings (DCH), two months after it announced the acquisition of about 33 per cent stake in the company for about Rs 450 crore.

Fortis Global is the wholly-owned overseas investment vehicle of the promoters of Fortis Healthcare Ltd, India’s second largest private hospital chain. Founded in October 2007, Dental Corporation has annual revenue of Rs 820 crore and is one of the fastest-growing dental chains in Australia.

The takeover implementation deed announced by Fortis Global on Friday has been unanimously approved by DCH directors, a company statement said.

“We welcome the proportional offer from Fortis Global and are happy to become a part of the rapidly expanding footprint of Fortis,” said Mark Evans, executive chairman of Dental Corporation.

The additional shares will be bought at an 18 per cent premium over the price at which Fortis Global invested in DCH in December 2010.

Depending on the level of acceptance of the takeover offer, Fortis Global’s shareholding in DCH will increase to more than 50.1 per cent and up to 58.6 per cent.

“The Dental Corp model adds a new vertical to the clinical competencies within Fortis Global. We will continue to support the Dental Corporation management team to deliver the company’s growth forecasts in Australia and New Zealand, and to potentially take this unique model to new geographies in Asia,” said Malvinder Singh, executive chairman of Fortis Global.

This is the third acquisition for the company, a family venture of Malvinder Mohan Singh and Shivinder Mohan Singh, the billionaire brothers who own majority stake in Fortis Healthcare Ltd. Yesterday, Fortis Global had announced the acquisition of an under-construction specialised cancer hospital in Singapore. The company has controlling stake in Hong Kong-based Quality Healthcare.

source : Business-Standard