Parkway War: Fortis Exits with Profit

Malaysian state investor Khazanah said on Monday it was offering S$3.95 ($2.88) per share for all outstanding shares of Singapore healthcare firm Parkaway Holdings.

Fortis Healthcare made a profit of S$116.7 million on its deal to accept the offer from  Khazanah, a Fortis spokesman said.

“Our decision to exit our investments…was made after carefull assessment in light of other growth opportunities available to us across the region and globally,” Malvinder Singh, the chairman of both Fortis and Parkway, said in a statement.

Fortis and Khazanah each currently own about 25 per cent of Parkway. The purchase will be Malaysian state investor’s biggest acquisition overseas.
Parkway shares were suspended on Monday pending the announcement by Khazanah and closed at S$3.88 on Friday. The price of S$3.95 is the highest for its shares since October 2007.

Khazanah and Fortis each currently own about 25 per cent of Parkway, which runs hospitals in Singapore, Malaysia, India and China, and want to use the firm to spearhead their regional expansion in the booming healthcare market.

Analysts had expected that Khazanah may have to pay more than S$4.00 a share for Parkway to fend off Fortis. Khazanah, which has a portfolio of $28 billion, is also looking to raise loans through DBS, UOB and OCBC.

Fortis controls Parkway with four of its 12 directors, including chairman Malvinder Singh. Khazanah has just under 24 per cent and two seats on the board.

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