Fortis to sell stake in Quality Healthcare for USD 355 million

Fortis Healthcare on Monday announced sale of its stake in Hong Kong-based Quality Healthcare to Bupa for $355 million to cut its debt.

Fortis Healthcare, promoted by Malvinder Singh and Shivinder Singh, holds the stake in Quality Healthcare through its Singapore subsidiary Fortis Healthcare International Pte Ltd.

"Fortis Healthcare International Pte Ltd...today announced its decision to sell its 100% stake in Altai Investments Limited, the holding company for Quality Healthcare, Hong Kong, to Bupa, for $355 million," the company said in a release.

The deal is expected to be completed in October 2013.

"The divestment clearly aligns our business with our stated priorities. We have taken a strategic decision to intensify our focus on our core hospital and diagnostic business in India with a clear path to profitability," the release quoted the Singh brothers as saying.

It further said that the divestment enables the company to "substantially improve net debt equity ratio, creating further room for growth".

The company continues to evaluate its portfolio of assets to ensure the right alignment and strategic fit, the company said.

After divestment in Quality Healthcare, India revenue will account for nearly 95 per cent of the company's total revenue. "With the addition of new capacity and performance improvements, the company expects its India business to exhibit a robust operating performance going forward."

J P Morgan and Religare Capital Markets were the financial adviseers to Fortis for this deal.