If
India can’t cough up, let’s go to Singapore.
Or so Fortis Healthcare seems to think.
Following the backlash that Fortis received after the company was ‘made’ to
acquire Singapore-based Fortis International for Rs 3,270 crore ($665 million)
from its promoter, the company is now planning to raise funds through an
initial public offer (IPO) in Singapore.
After selling their stake in Ranbaxy, brothers
Malvinder and Shivinder Singh shifted their focus to the hospital chain Fortis.
The brothers went on a shopping spree acquiring healthcare assets from
Australia, New Zealand, Singapore, Hong Kong, Vietnam and Sri Lanka.
Last year Fortis lost out in its battle for
acquiring Singapore’s biggest hospital chain, Parkway Holdings, but the
promoters had made many acquisitions in Fortis International at breakneck speed
before selling the whole bundle to Fortis Healthcare.
These acquisitions were done in their private
company, which was then transferred to the listed entity. Investors registered
their displeasure in the only way possible — by selling its shares. Fortis
Healthcare lost half its value, falling from Rs 150 in September 2011 to a low
of Rs 76, a loss of Rs 3,000 crore in share value, which roughly matches the
amount the company was made to pay its promoters.
Foreign institutional investors did most of
the punishing, and their holdings in the company came down from 8.47 percent to
Rs 5.29 percent.
The former promoters of Ranbaxy also left a
negative legacy at the company they sold to Daiichi Sankyo. Among them the
recent hit the company had to take on account of filling of false data caused
the company to set aside $500 million for settlement.
This legacy will continue to haunt them
wherever they go.
Given the investor response to the news, the
company has now decided to tap the Singapore market. With most of its new
healthcare assets in East Asia and the Pacific, the company is hopeful of
getting a better discounting (higher prices) from the Singapore market.
Due to depressed market conditions in
Singapore, the country has not seen any fund raising since October. Fortis’ issue, if it happens, will be the
first in Singapore in a while.
Shishir Asthana
First Post Business
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Consulting, Investment and Management, focusing three main economic sectors: International PR; Healthcare & Wellness;and Tourism & Hospitality. We also propose Higher Education, as a bridge between educational structures and industries, by supporting international programs. Sign up with twitter to get news updates with @SaigonBusinessC. Thanks.
No comments:
Post a Comment