Fortis Healthcare Hives Off Non-core Assets For SGX Listing (BT)
Listing of business trust to raise 20b rupees: reports
INDIA'S Fortis Healthcare has hived off its non-core business and related assets which will be listed as a business trust on the Singapore Exchange (SGX) to raise 20 billion rupees (S$458 million), according to media reports.
In a release to the Bombay Stock Exchange dated May 28, Fortis said the business trust, Religare Health Trust, obtained a conditional eligibility-to-list on the mainboard of SGX on May 24.
The move appears to be aimed at shifting towards a more asset-light, cost-effective business model to strengthen operations and enable Fortis to focus on its core business of medical healthcare services. It will also allow Fortis to deleverage its balance sheet.
"The company is denominating its business into a clinical establishment division and a medical services division. The board of directors has granted an in-principle approval for the future listing of the company's clinical establishment division on SGX and the company will be seeking shareholder approval," Fortis' company secretary Rahul Ranjan wrote.
Fortis did not respond to queries from BT by press time.
When contacted, an SGX spokesman said: "As the Asian gateway, SGX is well-positioned to enable international companies to raise capital for their business activities and expansion. However, we do not comment on individual entities or companies."
Fortis has reportedly spun off its out-patient departments and radiology division, among other things, into Religare Health Trust, which is said to be valued at some 30 billion rupees. Fortis will be left with in-patient departments, intensive care units, operation theatres and emergency services.
An Economic Times report said that Religare Health Trust will sell two-thirds of its units to investors.
The trust will be looking to invest in medical and healthcare assets and services in Asia, Australasia as well as emerging markets.
Fortis is probably best remembered for going head-to-head with Malaysia's sovereign wealth fund Khazanah Nasional over then-listed Parkway Holdings - now Parkway Pantai - in a high-profile corporate battle back in 2010. Khazanah eventually trumped Fortis' offer and took Parkway private.
Since then, Fortis Healthcare Singapore has acquired a majority stake in Singapore-based diagnostic firm RadLink-Asia and has opened an outpatient clinic for colorectal diseases at Novena Specialist Centre.
It is planning to open a hospital for colorectal diseases in Adam Road in the coming months.