Fortis scrip up 1.4 percent on Hong Kong acquisitionOctober 11th, 2010 - 5:17 pm ICT by IANS
Mumbai, Oct 11 (IANS) The scrips of Fortis healthcare rose as much as 3.41 percent in intra-day trade Monday after the company’s promoters announced the acquisition of Hong Kong-based Quality Healthcare Asia for about $195 million.
The New Delhi-based Fortis Healthcare, controlled by billionaire brothers Malvinder and Shivinder Singh, had earlier this year tried to take control of Singapore-based hospital chain Parkway Holdings as part of an effort to build an international business.
But it dropped out when a bidding war like situation built up with rival Malaysian sovereign investment fund Khazanah making a higher counter offer for the Singapore hospital chain.
In a late evening announcement Sunday, Fortis Global Healthcare Holdings, a wholly owned unit of the brothers Malvinder and Shivinder, said it was acquiring Quality Healthcare Asia for HK$1.5 billion ($195 million).
The deal also involves payment of HK $20 million as base working capital.
The Fortis scrip climbed 3.4 percent in early trade to an intra-day high of Rs.176.95. It ended the day at Rs.173.50, up 1.4 percent from its previous close.
The acquisition is in line with the stated position of Fortis healthcare to buy assets in order to become a major healthcare player in Asia.
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Tags: acquisition, bidding war, billionaire, fortis, fortis healthcare, global healthcare, hk, international business, investment fund, late evening, mumbai, New Delhi, oct 11, parkway holdings, promoters, quality healthcare, scrip, scrips, singapore hospital, working capital