All about Singapore8217;s Parkway

India's Fortis Healthcare and Malaysia's Khazanah are fighting for the control of Parkway. Here's why.

India8217;s Fortis Healthcare and Malaysia8217;s Khazanah are fighting for the control of Parkway. Here8217;s why.

Singapore8217;s Parkway Holdings,which operates 16 hospitals across Asia,is at the centre of a tussle for control by India8217;s Fortis Healthcare and Malaysian state investor Khazanah,its two largest shareholders.

Fortis controls Parkway with roughly 25 percent of the shares and four of 12 directors including Indian billionaire chairman Malvinder Singh. But Khazanah,which has just under 24 percent,has made a partial bid to buy 51.5 percent of the Singapore firm.

Parkway,valued at S4.3 billion 3 billion based on Khazanah8217;s offer price of S3.78 a share,is Asia8217;s largest listed healthcare firm by market capitalisation.

Its prized assets are Singapore hospitals,Gleneagles and Mount Elizabeth,whose patients include many wealthy businessmen and politicians from Asia,the Middle East and Russia.

Newton Investment Management with a 5.98 percent stake,Templeton Investment Counsel with a 5.97 percent stake and Malaysia8217;s Keck Seng with 2.98 percent were Parkway8217;s other top shareholders as of end-July.

Parkway8217;s hospitals and clinics are spread across Singapore,Malaysia,India,China,Brunei and the United Arab Emirates,and it also operates patient assistance centres in more than 35 countries including Indonesia the Philippines and Russia.

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Parkway reported a 22 percent rise in net profit to S26 million for the three months ended March as revenue grew 8.0 percent to S247.6 million from a year ago.

For 2009,net profit grew four-fold to S118.9 million on revenue of S979.2 million.

HISTORY:

Parkway,then called Singapore Glass,was listed on Singapore8217;s stock exchange in 1975. It got into the healthcare business in 1987 with the purchase of Gleneagles Hospital and bought Mount Elizabeth and East Shore hospitals in Singapore in 1995.

Private equity firm TPG became a Parkway shareholder in 2005 and sold its stake to India8217;s Fortis in March.

MANAGEMENT:

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Tan See Leng has been CEO since April 2010. Former CEO Lim Cheok Peng,one of Parkway8217;s founders,is executive vice chairman.

KEY ASSETS as of June 2010

Three hospitals in Singapore,11 in Malaysia,one in Brunei and one in India

Another four hospitals under development one each in Singapore,Malaysia,India and UAE

55 clinics,labs and health screening centres in Singapore,six in China and two in India. 1=1.413 Singapore Dollar