Malvinder and Shivinder Mohan Singh-promoted Fortis Healthcare, which is set to sell its Hong Kong arm Quality Healthcare Medical Services for around $300 million, has received preliminary bids for the unit from Japan?s Mitsui and US private equity firm Carlyle Group, according to people familiar with the matter.
Fortis Healthcare, which plans to scale back its international presence and focus on its home market, has already sold its Vietnam unit in June 2013 to Singapore-based Chandler for $80 million. The hospital chain in May this year also completed the sale of its Australian subsidiary Dental Corporation for around $263 million.
Quality Healthcare was the first international buy for Fortis International (at $190 million) when it was floated in October 2010. In 2011, Fortis Healthcare had acquired all the international operations of the family business. With the sale, the 50:50 split between international and Indian business in 2012 is expected to change to 20:80, said analysts. JPMorgan is advising the seller, sources said.
Private equity firm TPG Capital and Singapore tycoon Peter Lim?s Thomson Medical were also weighing a bid for the business, but it was unclear if they actually submitted one.
Fortis Healthcare plans to raise about $800 million from global asset sales as well as issue of equity in the first six months of the current fiscal ended September 2013. The fund-raisings are intended to cut its debt burden of Rs 7,000 crore.
The move marks a considerable U-turn in Fortis? strategy which had in 2011 gone on an acquisition spree buying hospital and medical service firms in Singapore, Hong Kong, Vietnam and Australia.
The firm currently has a listed arm in Singapore, Religare Health Trust, which owns hospital-related assets managed by India?s Fortis.
Established in 1868, Quality Healthcare is the largest provider of healthcare services to corporations in Hong Kong, with a network of 50 medical centres, more than 500 affiliated clinics and more than 20 dental and physiotherapy centres.
The India-listed flagship firm Fortis suffered a loss of Rs 220 crore in the first quarter, hit by higher operating costs, interest expenses and a one-time foreign exchange loss.
