Bangalore, Mar 15, 2010: Indian healthcare company, Fortis Healthcare, has acquired 23.9 percent strategic stake in Parkway Holdings, Singapore. Parkway is one of Asia’s premium healthcare providers, with a network of 16 hospitals having 3,400 beds spread over six countries, including India. The deal size is estimated to be about $685.3 mn.

Fortis has entered into a definitive agreement with TPG Capital, one of the world’s leading private investment firms, to acquire its 23.9 percent stake in Parkway Holdings. Fortis intends to seek four seats on the board of directors of Parkway and also intends to nominate Mr Malvinder Mohan Singh (current Chairman of Fortis Healthcare) as the Chairman of the Board of Directors of Parkway. Further, in connection with this acquisition, some members of the management of Parkway are participating with Fortis in this transaction.

Mr Malvinder Mohan Singh, Chairman of Fortis Healthcare, said, “Singapore is renowned as the international medical hub for high quality healthcare services, with access to a ready pool of experienced nursing staff, specialist medical practitioners and the latest medical technologies and treatments. Parkway’s strong presence in Malaysia with the Pantai Group of Hospitals gives us great confidence. This acquisition will significantly expand our footprint across the region and place us strategically for geographical and clinical leadership in Asia.”

For Fortis Healthcare, this comes close on the heels of the Wockhardt hospital acquisition in India. Fortis, has one of the largest hospital chains in India and this strategic interest makes it one of the leading players in Asia. The deal will enable Fortis to establish a Pan-Asian presence increasing its network to 62 hospitals with combined bed strength of over 10,000 beds. This will also impart it with a strategically meaningful position in Singapore, Malaysia and India and provide it with a platform to focus on Pan-Asia and the GCC region for future growth.

The potential synergy benefits from this integration includes multi-specialty capabilities, access to cutting-edge technology in stem-cell therapy and organ transplantation, sharing of medical technologies and know-how, exchange of human talent, optimizing costs of operations, high brand equity through integration of premium healthcare brands in Asia as well as a fillip to medical tourism initiatives with multiple options at different price points for customers.