Home / / Fortis Healthcare set to close Singapore buy by Dec-end

Fortis Healthcare set to close Singapore buy by Dec-end


Comments / 848 Views / Tuesday, 20 December 2011 00:01


NEW DELHI, (Reuters): Hospital chain Fortis Healthcare (India), controlled by billionaire brothers Malvinder and Shivinder Singh, is on course to raise funds and close the takeover of Singapore-based group firm Fortis Healthcare International by end-December, its chairman said.
“It’s getting closed. I have no worries on it,” Malvinder Singh told Reuters in an interview on Monday.


The brothers control Fortis Healthcare (India) and entirely own Fortis Healthcare International. The Indian firm had said last month it would buy the overseas firm for $665 million.
Fortis India is in the process of raising $175 million in fresh debt to fund the deal.
The transaction would raise the net debt at Fortis India to $1 billion and debt-equity ratio to 1.5 from under 0.5 now.
The company aims to bring it down to under 1 by March by infusing fresh equity, though it will not sell shares in the parent company, Singh said.
“One is SRL private equity, that’s going to come in as third round of funding. Second is that we are looking at asset-light model and by those two methods we will address the (debt-equity ratio of)1-1 by March,” Singh said.
Earlier this year, Fortis bought 86 percent stake in diagnostic services firm Super Religare Laboratories Ltd (SRL) from Singh brothers.


Share This Article


COMMENTS

Today's Columnists

Succeeding in the Social Age: Lessons for Lankans

25 May 2015

   I came across an interesting and insightful book entitled ‘A World Gone Social’. The authors Ted Coine and Mark Babbit take us through an important journey by discussing how we have transitioned from the industrial...


The issue of continual losses and depleted capital: Central Bank still misses the main point

25 May 2015

A parable from accounting teachers Accounting teachers are used to relating a story to their students when they are introduced to the concept of profit in an organisation. The objective is to show them that ultimate profits of a bu...


P. Leela, ‘forgotten’ singer who sang unforgettable film songs

23 May 2015

Baburaj, Abhayadev and P. Leela in an undated recording session     I was pleasantly surprised this week when a South Indian journal asked me to revise an article I had written earlier about the sin...


Football – moving the goalposts!

23 May 2015

  At long last the Football Federation of Sri Lanka will go into an election to pick its new Executive Committee. This is a result of the 02+02 year limitation of office which precludes the incumbent President and many of the football...


Columnists More