Kuala Lumpur: Malaysian state investor Khazanah extended its $835 million partial offer for Singapore hospital operator Parkway until 26 July, as it takes more time to counter Fortis Healthcare’s better bid.
Both India’s Fortis Healthcare and Khazanah want to use Parkway, which runs hospitals in Singapore, Malaysia, India and China, to spearhead their regional expansion in the booming healthcare market.
Fortis and its founding family have offered to buy Parkway for S$3.80 a share, valuing the firm at $3.1 billion, above Khazanah’s S$3.78 a share offer.
Khazanah’s Integrated Healthcare Holdings said the partial offer, which will double its stake in Parkway to 51.5%, will close on 26 July at 0930 GMT, confirming an earlier Reuters story that the date for the offer will be extended. The offer had been due to expire on Thursday.
“This isn’t very surprising, as Fortis’ offer makes Khazanah’s partial offer look less attractive,” said Lynette Tan, an analyst at DMG & Partners in Singapore.
“Khazanah may want to extend the date of its offer to give themselves more time to come up with a counter offer.”
The Malaysian firm, which needs 313 million shares for the offer to succeed, said it has received acceptance from shareholders who hold 14.19 million shares.
By 0620 GMT, Parkway shares were up 0.3% to S$3.88.
Khazanah is also waiting for Fortis to release offer documents to shareholders later this month before it can make a final judgment about its next move, a source with knowledge of the deal told Reuters.
Fortis controls Parkway with roughly 25% of the shares and four of 12 directors including chairman Malvinder Singh. Khazanah has just under 24% and two seats on the board.
Deutsche Bank and CIMB are advising Khazanah and Fortis is being advised by Macquarie and RBS. Morgan Stanley is acting as an independent adviser to Parkway.