For­tis weighs buy­out of S’pore-listed busi­ness trust

New Straits Times - - Business World -

MUM­BAI: For­tis Health­care Ltd, In­dia’s sec­ond-largest pri­vate hospi­tal chain by mar­ket value, is weigh­ing a buy­out of the Sin­ga­pore-listed busi­ness trust that owned some of its clin­ics, said sources.

The com­pany was con­sid­er­ing mak­ing an of­fer for all the units it didn’t al­ready own in RHT Health Trust, which had a mar­ket value of S$726 mil­lion (RM2.29 bil­lion), ac­cord­ing to the peo­ple.

De­lib­er­a­tions on the po­ten­tial take-pri­vate deal were at an early stage, and For­tis Health­care could de­cide not to pro­ceed with a bid, said the peo­ple.

RHT rose as much 5.8 per cent yes­ter­day in Sin­ga­pore, the big­gest in­tra­day gain in more than a month, prompt­ing an ex­change query. Units of the trust were up four per cent be­fore RHT re­quested a trad­ing halt, pend­ing a re­sponse to the bourse op­er­a­tor.

For­tis Health­care would first need to raise cash to fund the buy­out, which it planned to do by bring­ing in a new in­vestor, said the peo­ple.

IHH Health­care Bhd was among strate­gic bid­ders con­sid­er­ing an in­vest­ment in For­tis Health­care, ac­cord­ing to the peo­ple. They were com­pet­ing with KKR & Co, TPG and Bain Cap­i­tal, which had also been in talks about a pos­si­ble deal with the In­dian hospi­tal op­er­a­tor, said the peo­ple.

Any deal would add to US$7.4 bil­lion (RM32.63 bil­lion) in takeovers of Sin­ga­pore-listed com­pa­nies over the past 12 months, ac­cord­ing to data com­piled by Bloomberg. Tak­ing full own­er­ship of RHT could boost For­tis Health­care’s profit, said the peo­ple. It cur­rently holds 29.6 per cent of RHT, ex­change fil­ings show. Bloomberg

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