Singapore regulator asks Fortis to clarify on Khazanah offer

Singapore’s securities regulator, the Securities Industry Council (SIC), today asked Fortis Healthcare to clarify by July 30 if it would make a counter-offer to Malaysian fund Khazanah’s $835-million offer to acquire majority stake in hospital chain Parkway Holdings.

In a statement, SIC said Parkway Holdings’ shareholders should be given sufficient information, advice and time to enable them to reach an informed decision on the partial offer by Khazanah group entity IHHL (Integrated Healthcare Holdings Ltd).

“SIC on 16 June required Fortis to announce by 30 July whether or not it will be making a general offer for Parkway,” the securities regulator said in a statement.

The move is also aimed at “the need not to disturb the existing tactical balance between Integrated Healthcare and Fortis”, it added.

When contacted, Fortis spokesperson declined to comment on the issue.

The development comes against the backdrop of yesterday’s announcement by Delhi-headquartered Fortis that it was keeping its options open about a counterbid for Parkway.

“At this stage, the company wishes to announce it is keeping its options open in relation to the Khazanah partial offer and will continue to evaluate its options in the best interest of shareholders of the company,” Fortis had said in a statement yesterday.

Fortis has a 25 per cent stake in Parkway and is facing a challenge from Khazanah group company, IHHL, for control of the healthcare chain.

IHHL had made a partial offer to increase its holdings to 51.5 per cent from 23 per cent at present by acquiring 313 million shares of Parkway at Singapore dollar (SGD) 3.78 per share.

Morgan Stanley buys 115,000 more shares in Parkway Holdings

Morgan Stanley today said one of its investment arms, FrontPoint Management, has bought 115,000 additional shares in the Fortis-controlled Singapore hospital chain Parkway at a price of SGD 3.77 per share. With this, the total number of shares held by Morgan Stanley in the Singapore-based healthcare provider has gone up to 390,000 shares, the company said in a filing to the Singapore Stock Exchange.