15 September 2014 | News | By BioSpectrum Bureau
Fortis sells Singapore unit to Malaysia's IHH healthcare
The deal was struck for $108.6 million
Singapore: Fortis healthcare announced that it has inked a deal to sell its entire diagnostic and molecular imaging unit in Singapore - RadLink-Asia, to Malaysia-based IHH healthcare, for $108.6 million.
Having previously sold assets in Hong Kong and Vietnam, this deal marks yet another move of Fortis to withdraw from its international expansion strategy.
Radlink-Asia provides outpatient diagnostic and molecular imaging services. Mr Malvinder Singh, executive chairman, Fortis healthcare, said in a statement, "This is a strategic move to intensify our focus on our core hospitals and diagnostics businesses in India. The revenues will be rotated to strengthen our Indian business."
The company is in the process of expanding its chain of hospitals in India. During the financial year 2014, Fortis added 800 beds to the Indian healthcare network. JP Morgan and Religare Capital Markets acted as financial advisors for Fortis to facilitate the transaction.
Fortis healthcare was one of the few hospitals to build a strong overseas foundation. However, the leading healthcare provider has recently been on a selling spree, having sold many healthcare assets across Asia and is now focusing only on India. The deal, however, will help strengthen IHH healthcare's presence and its business across Asia.