Fortis to Receive Rs 9,234 Crores for Counter Bid on Parkway
Fortis, a Delhi-based healthcare major, is set to receive a significant amount of funding from various local banks, including Axis Bank, Punjab National Bank, State Bank of India, Bank of Baroda, and Yes Bank, to counter a bid by the Malaysian sovereign fund Khazanah for a majority stake in the Singapore-based hospital chain Parkway. The Indian firm is yet to decide whether to proceed with the counter-bid, but is expected to make an announcement by July 30. Yes Bank officials have committed Rs 500 crore to Fortis if it proceeds with the counter-bid.
Key Takeaways:
- Fortis has been offered Rs 9,234 crores by five local banks - Axis Bank, Punjab National Bank, State Bank of India, Bank of Baroda, and Yes Bank - to place a counter bid for Parkway.
- The amount committed by Yes Bank is Rs 500 crore, while the amount committed by other banks is still unknown.
- Fortis currently holds a 25.4% stake in Parkway and is the largest shareholder, while Khazanah holds 24% stake and has offered to increase its stake to 51.5% in June this year.
- If Fortis decides to proceed with the counter-bid, it will have to make a general offer to keep hold of control of Parkway.
- Religare Capital Markets is leading the fund-raising plans for Fortis, and the company was previously in talks with Royal Bank of Scotland and Macquarie to rope them in for the bid.
Statistics:
- Rs 9,234 crores: The total amount offered by five local banks to Fortis for a counter bid on Parkway.
- Rs 500 crore: The amount committed by Yes Bank to Fortis for the counter bid.
- 25.4%: Fortis' current stake in Parkway.
- 24%: Khazanah's current stake in Parkway.
- 51.5%: The stake Khazanah has offered to increase its stake to in June this year.
Sources:
- Various local banks (Axis Bank, Punjab National Bank, State Bank of India, Bank of Baroda, and Yes Bank)
- Fortis
- Khazanah
- Religare Capital Markets