Fortis Healthcare Singapore Pte. Ltd., a subsidiary of Fortis Healthcare International Pte. Ltd., one of our step-down subsidiaries in Singapore, announced its decision to divest 100% shareholding in RadLink-Asia Pte Ltd and its subsidiaries, “RadLink”, Singapore, to Medi-Rad Associates Ltd (Medi-Rad), an indirect wholly-owned subsidiary of IHH Healthcare Berhad, for SGD 137,000,000.
RadLink is engaged in the provision of healthcare services including the provision of outpatient diagnostic and molecular imaging services in Singapore. The offer price is reflective of the value and efficiencies added by the Fortis group.
The deal will be successfully closed following the necessary statutory and regulatory approvals as per local requirements.
Malvinder Singh, Executive Chairman, and Shivinder Singh, Executive Vice Chairman, Fortis Healthcare Limited, said “This is in line with our strategic decision to intensify our focus on our core hospital and diagnostics business in India. Our international healthcare businesses have all done well. The significant value that we have created, is now being unlocked and will be ploughed back to strengthen our growth in India.
“Singapore will always remain strategic and integral to our business plans for the future. We are committed to grow the relationships and partnerships that we have established here, the most prominent being our association with the Economic Development Board of Singapore (EDB) and the SGX listed Religare Healthcare Trust.”
During fiscal year 2014, Fortis added over 800 beds to its network in India. In May 2013, it launched its flagship, the Fortis Memorial Research Institute in Gurgaon and in January 2014, it commissioned a 260 bed facility in Ludhiana. A large facility in Chennai (Arcot Road) is also nearing completion and is expected to be commissioned in the next few months.
J. P. Morgan and Religare Capital Markets acted as financial advisors to Fortis for this transaction.