Apollo Hospitals, Asia's largest integrated healthcare company, will shortly initiate a dialogue with Malaysian sovereign wealth fund Khazanah to explore possible partnerships in India and the Asean region.
“We have an excellent understanding with Khazanah. But they have been busy with the Parkway acquisition, and we haven't been able to have a one-to-one with them. Hopefully, we will soon be able to discuss opportunities both within India and across the entire Asean,” said Apollo Chairman Prathap C Reddy.
Apollo's plans come after domestic rival Fortis Healthcare's unsuccessful bid to gain control of the Singapore-based hospital chain, Parkway Holding, eventually secured by Khazanah for about $2.6 billion.
Incidentally, the Malaysian sovereign fund already holds over 13 per cent stake in Apollo Hospitals, which it acquired in 2005. Parkway also has an existing joint venture with Apollo Gleneagles Hospitals. Khazanah also has a place on the board of Apollo Hospitals.
Reddy explained that discussions would begin after his daughter, Suneeta Reddy, also Director-Finance at Apollo Hospitals, returns from a visit abroad. “We will start talks in the next few weeks. Suneeta will be back in 10 days or so,” Reddy said.
When specifically asked whether Apollo would look at opportunities in Asean, where Khazanah has a strong presence through Parkway, Reddy said: “Why not? India is the only country with capable human resources. We should be positive.”
Parkway has facilities across Malaysia, Singapore. Brunei and China. “But nothing has been finalised till now,” he added.
The 10-nation Asean block consists of Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Myanmar, Cambodia, Laos and Vietnam.
African plans
Apart from eying options in Asia, Apollo Hospitals is also looking at opportunities in Africa. The healthcare major already has a presence in the continent through its joint venture with British American Investment in Mauritius — the Apollo Bramwell Hospital.
“We are looking at Nigeria, Kenya, Ghana and Ethiopia, and we have a team of three people working on it. But it takes time to get the concept right, find funding and get it off the ground,” Reddy said.
