Fortis acquires 28.6% stake in Lanka Hospitals for $36.3mn

Fortis Global Healthcare Holdings today said it has forayed into Sri Lankan market by acquiring 28.6 per cent stake in Lanka Hospitals Corporation Plc for $ 36.3 million (over Rs 160 crore).

"Lanka Hospitals is the first step for Fortis Global to build its healthcare business interest in one of the fastest growing economies in Asia," Fortis Global Healthcare Executive Chairman Malvinder Mohan Singh said in a statement.

He further added: "It is one of the most advanced and comprehensive healthcare facility in Sri Lanka. We believe there are tremendous opportunities for the hospital's expansion and we will support the company's management in realising such growth."

According to Fortis officials, the deal is worth $ 36.3 million, thus valuing the Sri Lankan hospital's overall stake at $ 126.92 million.

Lanka Hospitals is a renowned tertiary care healthcare delivery provider and currently one of the largest hospital groups in Sri Lanka.

The hospital specialises in cardiology and cardiac surgery, neuro-sciences, orthopaedics and complex urology/nephrology procedures.

The 350-bed hospital is majority owned by Sri Lanka Insurance Corporation Ltd, a government of Sri Lanka company.

In the last four months, Fortis Global has acquired the largest private primary care company Hong Kong, invested in the largest dental care company in Australia and announced the acquisition of an upcoming cancer speciality hospital project in Singapore.

"The acquisition is in line with Fortis Global Healthcare's vision of creating a pan-Asia healthcare platform and provides an access to one of the fastest growing economies in Asia," the company said.

In addition to Fortis Global Healthcare, billionaire brothers -- Malvinder Mohan Singh and Shivinder M Singh -- also own a majority stake in the India-listed Fortis Healthcare Limited, a leading hospital chain in India.