E Kumar Sharma
Fortis Healthcare International Pte Ltd, a subsidiary of Fortis Healthcare Ltd, a leading private sector healthcare provider, has sold its 64 per cent
stake in Australia's Dental Corporation Holdings Ltd (DC).
The move to divest the stake in Dental Corporation will reduce Fortis's overall debt by close to Rs 2,300 crore, which is essentially its acquisition cost and the debt sitting on DC's books.
Fortis sold the stake to UK-based healthcare group Bupa for A$270 million. The company had invested A$268 million in 2011 when it bought the stake.
Dental Corporation is the largest dental care network in Australia and New Zealand.
TOMORROW'S GOLIATHS: Fortis Healthcare The markets reacted favourably to the news and the
Fortis Healthcare stock touched a 52-week high of Rs 119.50 on the Bombay Stock Exchange before ending the day at Rs 116.65, gaining 7.02 per cent on Monday.
After the stake sale, Fortis still has debt of Rs 2,400 crore on its books.
"We were not in a position to cross-leverage this model to other geographies in Asia as we have with our other investments abroad," said Vishal Bali, Group CEO of Fortis Healthcare, explained the rationale for the stake sale to
Business Today.
Bali cites how
Fortis recently leveraged its primary and day-care speciality vertical in Asia and took it to the Gulf Cooperation Council (GCC). The GCC's members are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE).
BEST ADVICE I EVER GOT: Fortis Healthcare Vice-chairman Shivinder Singh This follows the tie-up announced on December 4 last with Majid Al Futtaim Healthcare, the healthcare arm of Dubai-based Majid Al Futtaim Ventures, to operate and manage its health care assets. These include a day-care speciality clinic located in Deira City Centre, one of Dubai's largest shopping malls.
Fortis has also cross-leveraged its hospitals and diagnostics business between India, Singapore and Vietnam.
The company says it does not anticipate further divestment in other geographies. The focus apparently is consolidation in Asia.
Fortis, which entered the healthcare sector in 2001, today has operations spanning areas such as diagnostics, primary care, day-care and hospitals. It has a presence in 11 countries with 75 hospitals (including 68 in India), over 12,000 beds (about 10,000 in India), and a workforce of 23,000.
Malvinder Singh (L) with Shivinder Mohan Singh 
Special 
