New Delhi: Brothers Malvinder and Shivinder Mohan Singh on Thursday launched their open offer for Singapore-based hospital operator Parkway Holdings Ltd—marking the beginning of a share acquisition race between their Fortis Healthcare Ltd and Malaysia’s state investment firm Khazanah Nasional Bhd.
The open offer was made through RHC Healthcare Pte Ltd, an investment vehicle that’s 49% owned by Fortis and 51% by the Singhs.
On 1 July, RHC said it would offer to acquire all of Parkway’s shares for $3.2 billion (Rs10,624 crore), or at S$3.80 a share, marginally higher than Khazanah’s offer of S$3.78.
RHC’s price is also a 25.8% premium over Parkway’s closing price a day prior to Khazanah’s offer for a partial stake purchase.
RHC’s open offer will close on 12 August, unless it gets an extension.
Khazanah, which got an extension to its previous offer closing date of 8 July so it could counter Fortis’s bid, will close its offer on 26 July.
RHC’s offer is subject to it increasing its holding to more than 50% of Parkway’s outstanding shares, including the 25.37% it already owns.
In March, Fortis acquired a 23.9% stake in Parkway for $959 million at $3.56 per share. It later increased its stake to 25.37%.
In May, Khazanah, which already owned 23% in Parkway, made a bid to acquire an additional 28% stake in the company for $839 million.
The Malaysian fund has interests in several South Asian healthcare firms, including India’s Apollo Hospitals, a rival of Fortis. Khazanah’s bid was countered by RHC’s bid earlier in July.
“A Parkway and Fortis combination will create an integrated pan-Asian healthcare services provider with significant opportunities for growth and value creation,” Fortis says in its offer document.
Three Parkway directors—Seow Yung Liang Richard, Lim Cheok Peng and Tan See Leng—have entered into inter-alia voting arrangements with Fortis Global Healthcare (Mauritius) Ltd, an indirect wholly owned subsidiary of Fortis.
Shares of Fortis fell 0.13% to close at Rs152.45 on the Bombay Stock Exchange on Thursday, on a day the benchmark Sensex index fell 0.16% to 17,909.46 points.