Fortis divests its sake in Parkway to Khazanah

Fortis divests its sake in Parkway to Khazanah

  Malvinder Mohan SinghEnding the nearly two-month long battle for control over Parkway, Fortis Healthcare, on Monday, announced it has signed a definitive agreement with Integrated Healthcare Holdings Limited, the investment arm of Khazanah Nasional to sell its entire stake in Parkway Holdings at S$3.95 per share in cash.

In March this year, Fortis had purchased 269.5 million shares (23.9 per cent strategic stake) in Parkway from TPG Capital in an off market deal at Singapore $3.56 per share. Besides this, it purchased additional 13.2 million shares through Open Market Purchases at about Singapore $3.22 per share, thereby making the investment in 282.7 million shares at roughly Singapore $ .54 per share. In a filing to Singapore Stock Exchange, Khazanah’s arm Integrated Healthcare Holdings (IHHL) said it is offering to acquire all shares in Parkway that it does not already own. The voluntary offer represents a 4.5 per cent increase to the partial offer.

Deliberate discussions

“Fortis Global Healthcare (Mauritius) Ltd (FGH), a wholly-owned subsidiary of Fortis Healthcare, has provided an irrevocable undertaking to IHHL to accept the voluntary general offer for all its shares,” the filing added. Commenting on the development, Fortis & Parkway Chairman Malvinder Mohan Singh said “After considered and deliberate discussions, we have decided to divest our strategic stake in Parkway and have reached an agreement with Khazanah to accept their voluntary general offer. Our decision to exit our investments took into account the interest of all stakeholders of Fortis. It was made after careful assessment of the intrinsic value of Parkway and in light of other growth opportunities available to us across the region and globally”.

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