fortis global healthcare

This article seriously tempts me to get back in....

http://www.asiantribune.com/news/2011/03/05/sri-lanka-asian-healthcare-giant-fortis-acquires-distilleries-stake-lanka-hospitals


Sri Lanka Asian healthcare giant Fortis acquires Distilleries stake in Lanka Hospitals




Sun, 2011-03-06 05:01 ? editor

Bussiness




By J.A. Fernando in Colombo



Colombo, 06 March, (Asiantribune.com):

Malvinder Mohan Singh and Shivinder Mohan Singh owned Singapore based Fortis Global Healthcare Holdings Pte. Ltd and on Friday acquired a 28.6% of Distilleries Company of Sri Lanka for Rs.4 billion of Lanka Hospitals PLC (LHCL) thus marking the entry of Fortis Global, in one of Asia's fastest growing economies - Sri Lanka.

The deal was executed on behalf of the Asian healthcare, provider by Religare Capital Markets joint-venture, with Sri Lanka?s Bartleet Mallory Stockbrokers Ltd, whilst the Distilleries company of Sri Lanka (DIST) sold their remaining 64,120,915 shares, at a price of Rs.62 per share of Lanka Hospitals PLC..

Fortis Global Healthcare Holdings Pte Ltd., operates as a subsidiary of Fortis Global Healthcare Limited in India. Fortis Healthcare Limited (FHL) is one of the operators in tertiary care healthcare delivery market and the Company is engaged in healthcare services. Its projects include Shalimar Bagh hospital, Fortis International Institute of Bio Medical Science (FIIBMS), Kolkata Project and Mulund Expansion Project.

During the fiscal year ended June 30, 2010 (fiscal 2010), the Company acquired Greenfield Hospitals division of Wockhardt Hospitals Ltd. comprises 10 hospitals in metro cities of Mumbai, Bengaluru and Kolkata.

With the acquisition, the Company has its presence across India with a network of 48 hospitals and a capacity of 7700 beds. On June 18, 2009, the Company incorporated a wholly owned subsidiary, Fortis Hospitals Limited. The main objects of the wholly owned subsidiary included purchase, lease or otherwise acquire, establish, maintain, operate, run, manage or administer hospitals, medicare, healthcare, diagonostic, health aids and research centre.

One of the leading hospitals chain amidst news reports that stated Nation?s premier state owned commercial bank, Bank of Ceylon and its subsidiary Property Developers are in a bid to buy partly state owned Lanka Hospitals (LHCL) stake of Distilleries, On Friday Distilleries sold its 28.66% to Fortis Healthcare Global Holdings Pte Ltd.

With the latest acquisition, Fortis Global Healthcare Executive Chairman Malvinder Mohan Singh reported to have said that ?Lanka Hospitals is the first step for Fortis Global to build its healthcare business interest in one of the fastest growing economies in Asia. It is one of the most advanced and comprehensive healthcare facility in Sri Lanka. We believe there are tremendous opportunities for the hospital?s expansion and we will support the company?s management in realising such growth.?

Reports reveal that Fortis? latest acquisition of Lanka Hospitals, the fourth in five months, marks an important step in achieving the Singh family?s vision of creating a premier global healthcare group outside India. In the last four months, Fortis has acquired the largest private primary care company in Hong Kong, invested in the largest dental care company in Australia and announced the acquisition of a cancer speciality hospital project in Singapore.

Formerly known as Apollo Hospitals Colombo, Lanka Hospitals is a renowned tertiary care healthcare delivery provider and currently one of the largest hospitals in the country. The 350 bed hospital is majority owned by state run Sri Lanka Insurance Corporation Ltd. After a land mark court?s judgment that replaced the privatization of the Sri Lanka Insurance company enabled the government to own the stake of Lanka Hospitals that was acquired earlier by business magnate Harry Jayawardena led Distilleries Company via Sri Lanka Insurance.

It was earlier predicted through a recent research report by partly government owned Lanka Securities Ltd (LSL) that Distilleries is scouting for prospective buyers for its 28.6% stake in Lanka Hospitals PLC (LHCL) as it lost majority ownership of LHCL through Sri Lanka Insurance (SLIC) after the Supreme Court judgment.

"Bank of Ceylon and Property Development PLC were mentioned among the prospective buyers" the report by LSL noted adding that that deal will occur in the Financial Year 2012. It further said that Distilleries is expecting a price between Rs.60 to Rs.65 per share on sale, which is a premium price compared to the all time high price of a LHCL share which is at Rs.42.80. Although, Lanka Securities is predicted that the sale will be concluded at Rs.42.80 per share returning a total sum of Rs.2.73 billion for Distilleries and a capital gain of Rs.1.7 billion will be reflected in Distilleries' financials for 2012, the deal was completed much earlier on 2011 March returning almost a profit of Rs.3 billion on this week.

Sri Lanka Insurance Corporation is the biggest shareholder in Lanka Hospitals with General Fund owning 40.7% and Life Fund holding 14%, while Bank of Ceylon subsidiary Property Development Ltd., own 9.53% of the company. Now led by a powerful Board of Directors chaired by Defence Secretary Gotabaya Rajapaksa, Lanka Hospitals had reported revenue of Rs.2.3 billion and a net profit of Rs.168.2 million for the nine months ended on 30 September 2010.

- Asian Tribune -