Fortis(FOHE.BO), which controls just over 25 percent of Parkway, had intended to build a controlling stake in the firm before Khazanah made a surprise $835 million partial offer to lift its stake to 51.5 percent.
Controlled by billionaire brothers Malvinder Singh and Shivinder Singh, Fortis is offering to buy shares it doesn't already own in Parkway for S$3.80 a share, or 2 Singapore cents more than the S$3.78 offered by Khazanah.
The offer price is a slim premium to Parkway's last traded price of S$3.57. Parkway shares are suspended from trading.
The offer is conditional on Fortis getting at least 50 percent of the Singapore firm. Fortis shares rose as much as 3 percent on Thursday morning after an initial drop.
Both Fortis and Khazanah want to use Parkway, which runs 16 hospitals across Asia including Singapore, Malaysia, India and China to spearhead their regional expansion in healthcare.
Parkway's prized assets are Singapore hospitals, Gleneagles and Mount Elizabeth, whose patients include many wealthy businessmen and politicians.
An adviser for Fortis said the firm has already lined up financing for the bid.
With a combined fortune estimated at $3 billion by Forbes magazine -- good for 17th place on its India rich list -- the Singh brothers could have the means and access to capital to take on the Malaysian fund.
Khazanah declined comment on Fortis' offer. Khazanah's $28 billion in assets are mostly concentrated in Southeast Asian financials, healthcare and telecoms.
The fund already owns stakes in healthcare firms across Asia, including in Apollo HospitalsAPLH, a rival to Fortis in India.
In its offer document, Fortis said its long-term vision is to manage and operate Parkway and Fortis as a single entity.
"With Parkway as the flagship of the combined group, a Parkway and Fortis combination will create an integrated pan-Asian healthcare services provider, significantly increasing the Parkway Group's regional footprint and presence," it said.
Source : Reuters
Photo :kyvoice.com
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