Fortis to sell Quality Healthcare to Bupa for $355mn

Written By Unknown on Selasa, 15 Oktober 2013 | 15.45

Fortis Healthcare  has decided to sell its stake in Quality Healthcare Medical Services in Hong Kong to British medical services group Bupa for USD 355 million, as part of its efforts to reduce debt by selling some assets.

The deal is expected to be completed this month, a company statement said on Monday.

The divestment will help Fortis to focus on its hospital and diagnostic business in India and further strengthen its balance sheet by improving its net debt to equity ratio and creating further room for growth, the company said.

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.

Quality Healthcare was bought by a vehicle owned by Fortis founders Malvinder Mohan Singh and his brother Shivinder in October 2010 for about USD 190 million. In 2011, Fortis acquired all the international operations of the family business.

JPMorgan and Religare Capital Markets acted as advisors to Fortis on this transaction.


On October 15, 2013, at 13:40 hrs Fortis Healthcare was quoting at Rs 107.50, up Rs 3.15, or 3.02 percent. The 52-week high of the share was Rs 119.50 and the 52-week low was Rs 84.00.

The company's trailing 12-month (TTM) EPS was at Rs 0.25 per share as per the quarter ended June 2013. The stock's price-to-earnings (P/E) ratio was 430. The latest book value of the company is Rs 70.41 per share. At current value, the price-to-book value of the company was 1.53.


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