Fortis to acquire majority stake in Australian firm

Fortis Global Healthcare Holdings will acquire a majority stake in Australia’s Dental Corporation Holdings (DCH), two months after it announced the acquisition of about 33 per cent stake in the company for about Rs 450 crore.

Fortis Global is the wholly-owned overseas investment vehicle of the promoters of Fortis Healthcare Ltd, India’s second largest private hospital chain. Founded in October 2007, Dental Corporation has annual revenue of Rs 820 crore and is one of the fastest-growing dental chains in Australia.

The takeover implementation deed announced by Fortis Global on Friday has been unanimously approved by DCH directors, a company statement said.

“We welcome the proportional offer from Fortis Global and are happy to become a part of the rapidly expanding footprint of Fortis,” said Mark Evans, executive chairman of Dental Corporation.

The additional shares will be bought at an 18 per cent premium over the price at which Fortis Global invested in DCH in December 2010.

Depending on the level of acceptance of the takeover offer, Fortis Global’s shareholding in DCH will increase to more than 50.1 per cent and up to 58.6 per cent.

“The Dental Corp model adds a new vertical to the clinical competencies within Fortis Global. We will continue to support the Dental Corporation management team to deliver the company’s growth forecasts in Australia and New Zealand, and to potentially take this unique model to new geographies in Asia,” said Malvinder Singh, executive chairman of Fortis Global.

This is the third acquisition for the company, a family venture of Malvinder Mohan Singh and Shivinder Mohan Singh, the billionaire brothers who own majority stake in Fortis Healthcare Ltd.

Yesterday, Fortis Global had announced the acquisition of an under-construction specialised cancer hospital in Singapore. The company has controlling stake in Hong Kong-based Quality Healthcare.