Fortis 'open' to buying rivals

We are open to buying good quality assets, says MD.

Fortis Healthcare, the New Delhi-based healthcare chain, today said it was open to acquiring rivals, including Wockhardt Hospitals, owned by Habil Khorakiwala.

Fortis, owned by Shivinder Mohan Singh, on April 2 had sought the Securities and Exchange Board of India’s permission to raise Rs 1,000 crore from sale of rights shares.

“If anyone is ready to sell, we are ready to look at it,” said a company official, declining to be identified. The official declined to say if the company was already in talks with Wockhardt for a possible acquisition.

Fortis has in the past acquired hospitals, including Escorts Heart Institute and Research Centre and Malar Hospital, Chennai.

Fortis said the funds to be raised through the rights offer were meant for the expansion plan, which included scaling up the number of hospitals to 40 from 27 by 2012. It plans to spend about Rs 2,500 crore ($500 million).

Fortis Healthcare, the second-largest healthcare chain in the country, planned to double its beds to 6,000 by 2012 from 3,000, said Shivinder Mohan Singh, managing director, Fortis Healthcare.

Using a hub-and-spoke model, the group, which till now was concentrated in North India, is aggressively looking at expanding in the South. In Bangalore and Mumbai, it has begun with spokes. “If there is any quality infrastructure, we are interested. We are open to buying good quality assets,” said Singh. When asked about reports of Fortis showing interest in buying a hospital chain major, he said, “It is in the air.” He dismissed it as a rumour.