India’s second largest private chain of hospitals, Fortis Healthcare, is planning to buy the Singapore-based RHT Health Trust.
Sources privy to the matter pointed out that the New Delhi-based company is considering making an offer for all the units it does not already own in the Singapore Exchange-listed trust, which has a market value of USD726 million.
Pointedly, RHT gained as much as 5.8 per cent on Tuesday, the biggest intraday gain in more than a month. Units of the trust were up by 4 per cent before RHT requested a trading halt, pending a response to the bourse operator.
However, Fortis Healthcare would initially need to raise cash to fund the buyout, which it plans to do by bringing in a new investor. IHH Healthcare is among strategic bidders considering an investment in Fortis Healthcare.Its rivals are KKR, TPG and Bain Capital, which have also been in talks about a possible deal with the Indian hospital operator.
Any deal would add to USD7.4 billion (SGD10.3 billion) in takeovers of Singapore-listed companies over the past 12 months.
At least some of Fortis Healthcare's fund raising could come through a sale of compulsorily convertible debentures, though the company has not decided on the exact structure.