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Fortis Healthcare has decided to sell its Singapore subsidiary RadLink-Asia Pte Ltd and its arm RadLink Singapore to Malaysian major IHH Healthcare Berhad for S$137 million (over ₹655 crore).
Owned by brothers Malvinder Singh, who is Executive Chairman, and Shivinder Singh, Executive Vice-Chairman, Fortis Healthcare has been on a divestment spree since last year to cut down debt. The RadLink-Asia exit is the first this fiscal year.
The deal will be closed after local statutory and regulatory approvals, Fortis said on Friday. IHH Healthcare Berhad will buy the assets, which are engaged in providing diagnostic and molecular imaging services, it said.
In a statement, the Singh brothers said: “This is in line with our decision to focus on our core hospital and diagnostics business in India. Our international healthcare businesses have all done well. The significant value that we have created is now being unlocked and will be ploughed back to strengthen our growth in India.”
Debt pared Fortis, in its investor presentation, said its debt stood at ₹1,065 crore as of end-June, 2014, which is significantly down from ₹3,284 crore as on June 30, 2013. The latest sale is expected to improve its balance-sheet further and help the company focus on India, where it intends to add 500-600 beds each year.
In Singapore, Fortis owns two more hospitals, Fortis Surgical Hospital and Singapore Radiopharmaceuticals. In 2013, the company sold three major international assets — Dental Corporation in Australia, Fortis Hoan My in Vietnam, and Quality Healthcare in Hong Kong.
On Friday, the Fortis stock closed at ₹121.80, down 2.72 per cent, on the BSE.
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