Fortis to sell Hong Kong-based Quality Healthcare to Bupa for $355 mn
15 Oct 2013
Fortis Healthcare yesterday said that it would sell its Hong Kong-based Quality Healthcare to insurance major Bupa for $355 million (Rs2,167 crore) in order to reduce debt.
The move comes months after Fortis Healthcare sold its entire stake in Australia's Dental Corporation Holdings to Bupa for A$270 million and agreed to sell its entire stake in Fortis Hoan My Medical Corp in Vietnam to Viva Holdings for $80 million.
"Fortis Healthcare International Pte Ltd today announced its decision to sell its 100% stake in Altai Investments Limited, the holding company for Quality Healthcare, Hong Kong, to Bupa, for $355 million," the Gurgaon-based company said in a statement.
Fortis Healthcare, promoted by brothers Malvinder Singh and Shivinder Singh, holds the stake in Quality Healthcare through its Singapore subsidiary Fortis Healthcare International Pte Ltd.
Fortis Healthcare had acquired Quality Healthcare Asia in 2010 for $193 million (Rs882 crore). (See: Fortis Healthcare to acquire Hong Kong's Quality Healthcare for Rs882 crore)
The acquisition gave Fortis Healthcare a network of 60 wholly-owned medical centres, 520 affiliated clinics, some 47 dental and physiotherapy centres, and a private-nursing agency with more than 3,000 nurses.
"The divestment clearly aligns our business with our stated priorities. We have taken a strategic decision to intensify our focus on our core hospital and diagnostic business in India with a clear path to profitability," the company said in a statement.
It further added that the sale will allow the company to "substantially improve net debt equity ratio, creating further room for growth".