Fortis Healthcare to disown 100 per cent stake in RadLink-Asia to Fullerton Healthcare for SGD 111 million
Wrapping up sale of its major international assets, Fortis Healthcare's Singapore-based arm will offload 100 per cent stake in RadLink for SGD 111 million (over Rs 530 crore) to Fullerton Healthcare Group.
Fortis Healthcare International, a step-down subsidiary of Fortis Healthcare, announced its decision to divest 100 per cent shareholding in RadLink-Asia and its subsidiaries, the company said in a statement.
The deal will be completed by May 12, it added. RadLink provides diagnostic and molecular imaging services.
In a joint statement, Fortis Healthcare Executive Chairman Malvinder Singh and Executive Vice Chairman Shivinder Singh said: "The significant value that we have created in our international healthcare businesses is now being unlocked and will be ploughed back to strengthen our growth in India."
RadLink was acquired in 2012-13 and "the divestment of this last major international business is in line with our strategic decision to intensify our focus on our core hospital and diagnostics business in India," they added.
JP Morgan and Religare Capital Markets acted as financial advisors to Fortis for this transaction.
Last year, Singapore's competition authority had sought a more detailed review of Fortis' plan to exit from RadLink saying the deal significantly reduced the number of providers of radiology and imaging services.
In 2013, it completed the sale of entire 65 per cent stake in Vietnam-based hospital chain Fortis Hoan My Medical Corporation for USD 80 million. The healthcare firm had also sold its stake in Hong Kong-based Quality Healthcare to Bupa for USD 355 million.
In 2012, Fortis Healthcare International had sold 64 per cent stake in Dental Corporation Holdings, Australia, to Bupa, for AUD 270 million.
