India - Carlyle Group, TPG Capital May Invest In Fortis Healthcare

Fortis Healthcare India Limited is planning to raise funds from Carlyle Group and TPG Capital by divesting 15-20% stake in the company.

Fortis promoters - Singh brothers are likely to sell an additional 6.5% through a stock auction, and this may be followed by the 15%-20% placement.

Fortis founders owned 81.48% of the company as at Dec. 31, 2011. They have to cut their stake to follow Indian rules, which state that the public should hold at least 25% of any listed company.

In Nov 2011, the company acquired Fortis Healthcare International Pte Limited for $665 Mn from RHC Financial Services Mauritius Ltd, owned by the Singh brothers.

Fortis Healthcare is also planning to hive off non-core businesses and related assets into a separate company, which will be listed as a business trust on the Singapore Exchange.

The company plans to raise around $300 Mn through the Singapore listing by June.

Recently, it acquired 85% stake in RadLink-Asia Pte Ltd through its offshore subsidiary - Fortis Healthcare Singapore Pte. Ltd for S$62.9Mn.

Fortis Healthcare has been on an acquisition spree for past couple of years and now owns clinics and hospitals in several Asian countries including Australia, Hong Kong and Singapore.

Last year in August, it acquired 65% stake in Vietnam's Hoan My Medical Corporation for $64 Mn. In November'10, it acquired Quality Healthcare in Hong Kong for around R882Cr.

In 2011, it bought 30% stake in Australia's dental heathcare chain Dental Corporation for R450Cr in Jan; then it acquired a specialised under construction cancer hospital in Singapore for R115Cr in Feb and in March it forayed into the Sri Lankan healthcare market by acquiring 28.6% stake in Lanka Hospitals Corporation Plc for $36.3 Mn.

Fortis was also talking Abraaj Holding to buy a majority stake in Turkey based Acibadem Hospitals, but the deal didn't fructify due to valuation issues and political unrest in West Asia.

Irfan Khan

dealcurry.com

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