Malvinder Mohan Singh, Chairman, Fortis Healthcare, spoke to Joe C Mathew after his company decided to sell its entire stake in Singapore’s leading healthcare provider Parkway Holdings to Malaysian fund Khazanah. Excerpts:
You were bidding for majority stake. So when did you realise that you had lost the battle?
Our vision is to have a leadership position in Asian healthcare business and the Parkway deal was part of that strategy. We had bid for Parkway shares at S$3.8 a share, and knew, beyond that, it doesn't make financial sense. I don't think it was a loss as it was a collective decision in the best interest of our shareholders. We are not getting emotional about our decisions. At the end, there is a price point for everything.
You have said you will continue to work with Parkway. Do you think that continued investment in Parkway would have been better for such a relationship?
We are not a financial investor. Either we will drive the business as a strategic investor, or we will be out of it. We have a good relationship with the Parkway management.
It must be a big setback for Fortis and your plans?
No. It was a learning experience. One would have never understood the business environment, the geo-political issues, competition in other Asian markets by remaining in India. We have strong relationships with people there.
So, you are not going to return to India immediately?
The question is not about my presence in Singapore, it's about our future growth plans in the region. It has not changed. The vehicle (Parkway) must have changed, but not the vision.
How? Parkway was projected as the hub of your overseas expansion plans?
Parkway is not there today, but there are other opportunities to come.
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How do you intend to utilise the funds available now?
There are other opportunities and comparable healthcare facilities in the same region. We will look at them. The Middle East, Hong Kong, China and the Indian sub-continent are all regions of interest to us. Our intent is clear.
So the fund raising plans will continue?
Yes. It will.
What is the need for a secondary listing (of Fortis) in Singapore?
We are seriously thinking of that. There are many funds that may not be interested in an India-specific or India-listed company, but will find a Singapore-listed firm more attractive.
How is your relationship with Khazanah? Do you think the fund can be an investor in Fortis in future?
Why not? We will welcome Khazanah.
Do you think that your loss will be Apollo's gain?
I don't think of it as a loss for Fortis. I cannot comment on what others might do, but we have done what is best for Fortis.
At the group level, what is the strategy now? Has it changed?
No. Both the businesses (Fortis & Religare) will grow independently.