Fortis Healthcare has acquired 23.9 per cent strategic stake in Singapore based Parkway Holdings Ltd, one of Asia's largest healthcare service providers, from TPG Capital (formerly Texas Pacific Group) for a total consideration of US$ 685.3 million.

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.

Malvinder Mohan Singh, chairman of Fortis, will be new chairman of Parkway and Fortis will induct 4 new directors on the Board. Few members of the management of Parkway will join with Fortis. With this announcement, Fortis Healthcare scrip touched to its 52 weeks highest level at Rs 187.45 on BSE today.

Malvinder Singh 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, a big step closer to our vision of establishing a global healthcare delivery network."

Parkway is counted as Asia's premium healthcare provider, with a network of 16 hospitals having 3,400 beds spread over six countries, including India. For Fortis, this comes close on the heels of the Wockhardt Hospital acquisition in India.

Parkway, a listed entity on Singapore Stock Exchange, has a market cap of US$2.4 billion. Its hospitals are located across Asia including Singapore (1,022 beds), Malaysia (1,900 beds), Brunei (20 beds, India((425 beds), China (14 beds), and the UAE (260 beds). Parkway Life REIT is Asia's largest healthcare REIT and is also a part of Parkway Holdings. Parkway Life invests in income producing real estate or real estate related assets in the Asia Pacific region that are used primarily for healthcare and/or healthcare-related purposes. It has a market cap of Singapore $791.2 million.

Shivinder Mohan Sings, managing director, Fortis healthcare, said, "The acquisition of a strategic stake in Parkway will give the combined entity the benefit of an unparalleled medical talent pool in Asia and also access to best in class practices thus creating synergies that will help offer a global quality healthcare experience across the region."

Dr Lim Cheok Peng, executive vice chairman and CEO of Parkway, said, "We are pleased to welcome Fortis as a new major shareholder of Parkway. There are lots of synergies which Parkway can leverage on and we look forward to working with Fortis to take Parkway to the next level."