March 14, 2010

Fortis Healthcare Ltd., India's fastest growing healthcare company, today announced the acquisition of a 23.9% strategic stake in one of Asia's largest healthcare service providers, Parkway Holdings Limited, from TPG Capital (formerly Texas Pacific Group). Parkway is counted as Asia's premium healthcare provider, with a network of 16 hospitals having 3,400 beds spread over six countries, including India. The deal size is estimated to be about US$ 685.3 million (S$959.4 million).

Fortis has entered into a definitive agreement with TPG Capital, one of the world's leading private investment firms, to acquire its 23.9% stake in Parkway Holdings Ltd. Fortis intends to seek 4 seats on the board of directors of Parkway and also intends to nominate Mr. Malvinder Mohan Singh (current Chairman of Fortis Healthcare) as the Chairman of the Board of Directors of Parkway. Further, in connection with this acquisition, some members of the management of Parkway are participating with Fortis in this transaction.

Mr. Malvinder Mohan Singh, Chairman Fortis Healthcare said, "Singapore is renowned as the international medical hub for high quality healthcare services, with access to a ready pool of experienced nursing staff, specialist medical practitioners and the latest medical technologies and treatments. Parkway's strong presence in Malaysia with the Pantai Group of Hospitals gives us great confidence. This acquisition will significantly expand our footprint across the region and place us strategically for geographical and clinical leadership in Asia, a big step closer to our vision of establishing a global healthcare delivery network".

"We are long term players in the healthcare business and we understand this business. We will support the management of Parkway in achieving their growth objectives and work together to enhance shareholder value," he added.

For Fortis Healthcare, this comes close on the heels of the Wockhardt hospital acquisition in India. Fortis, has one of the largest hospital chains in India and this strategic interest makes it one of the leading players in Asia. The deal will enable Fortis to establish a Pan-Asian presence increasing its network to 62 hospitals with combined bed strength of over 10,000 beds. This will also impart it with a strategically meaningful position in Singapore, Malaysia and India and provide It with a platform to focus on Pan-Asia and the GCC region for future growth.

Parkway, a listed entity on Singapore Stock Exchange, has a market cap of US$2.4 billion. Its hospitals are located across Asia including Singapore (1,022 beds), Malaysia (1,900 beds), Brunei (20 beds), India (425 beds), China (14 beds) and the UAE (260 beds). Parkway Life REIT is Asia's largest healthcare REIT and is also a part of Parkway Holdings. Listed on the Singapore Exchange in August 2007, Parkway Life REIT invests in income producing real estate or real estate related assets in the Asia Pacific region (including Singapore) that are used primarily for healthcare and/or healthcare-related purposes. Parkway Life REIT has a market cap of S$791.2 million (US$564.3 million).

Mr. Shivinder Mohan Singh, Managing Director, Fortis Healthcare said, The acquisition of a strategic stake in Parkway will give the combined entity the benefit of an unparalleled medical talent pool in Asia and also access to best in class practices thus creating synergies that will help offer a global quality healthcare experience across the region."

The potential synergy benefits from this integration includes multi-specialty capabilities, access to cutting-edge technology in stem-cell therapy and organ transplantation, sharing of medical technologies and know how, exchange of human talent, optimizing costs of operations, high brand equity through integration of premium healthcare brands in Asia as well as a fillip to medical tourism initiatives with multiple options at different price points for customers.

Dr. Lim Cheok Peng, Parkway's Executive Vice Chairman and Chief Executive Officer, added, "We are pleased to welcome Fortis as a new major shareholder of Parkway. There are lots of synergies which Parkway can leverage on and we look forward to working with Fortis to take Parkway to the next level." Religare Capital Markets Plc (The global Investment banking arm of Religare Enterprises Limited) is the sole advisor to Fortis Healthcare Ltd. on this transaction.

The stock was trading at Rs.184.50, up by Rs.6.15 or 3.45%. The stock hit an intraday high of Rs.187.45 and low of Rs.180.

The total traded quantity was 2354287 compared to 2 week average of 999168.

Source: Equity Bulls

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