Fortis aims at 1:1 debt-equity ratio after Parkway deal: Malvinder Singh

13 Mar 2010

The promoter of Fortis Healthcare Malvinder Singh said today the hospital chain is aiming to work within 1:1 debt equity for the acquisition of Singapore-based healthcare firm Parkway Holdings.

''If there is a spike in that, we will address that through the warrants that are currently outstanding or through another equity infusion. So we will address that and we will try and keep the capital structure in the ratio of 1:1,'' CNBC TV-18 reported Malvinder Singh as saying.

In the largest overseas deal by an Indian healthcare provider, Fortis Healthcare yesterday acquired TPG Capital's 23.9-per cent stake in Parkway Holdings for about $685.3 million (Rs3,100 crore) (See: Fortis Healthcare acquires 23.9-per cent stake in Parkway Holdings for $685.3 million).

The acquisition is seen by industry experts as a diversion from the healthcare firm's earlier strategy of focussing on Indian market.

Singh said the takeover of troubled Wockhardt Hospitals last year had given Fortis a pan-India presence and the company will continue to focus on India through organic and inorganic opportunities.

''But clearly the aspiration is to be global, to be larger and the first next step was to get into Asia and to have a strong leadership position in Asia. Parkway is a company which today is the largest healthcare provider in the Asian market,'' he added.