Khazanah wins Parkway battle

By Jeeva ArulampalamPublished: 2010/07/27


Khazanah-owned Integrated Healthcare is revising its partial offer to a voluntary conditional general cash offer for all remaining Parkway shares at RM9.24 per share.


Government investment arm Khazanah Nasional Bhd has won the battle over Singapore's healthcare services provider Parkway Holdings Ltd as it seeks to buy all remaining shares in the company for a total of S$3.5 billion (RM8.19 billion).


Khazanah-owned Integrated Healthcare Holdings Ltd told the Singapore Stock Exchange (SGX) yesterday that it was revising its partial offer to a voluntary conditional general cash offer for all remaining Parkway shares at S$3.95 (RM9.24) per share.


The voluntary general offer (VGO) price is 4.5 per cent more than Integrated Healthcare's initial partial offer price of S$3.78 (RM8.85).


Integrated Healthcare, with parties acting in concert, hold a 23.9 per cent stake in Parkway as at July 26.



Meanwhile, Fortis Global Healthcare (Mauritius) Ltd, a wholly-owned unit of India's Fortis Healthcare Ltd, has said it will sell its 284.2 million shares or 24.9 per cent stake in Parkway for a tidy profit of S$116.7 million (RM273.08 million).


Fortis Global's exit from Parkway will also see the resignation of brothers Malvinder Mohan Singh and Shivinder Mohan Singh as well as Sunil Godhwani and Balinder Singh Dhillon as Parkway directors.


Malvinder is the chairman of Fortis Healthcare while Shivinder is the managing director of the company.


Both Khazanah and Fortis Healthcare, through their units, have been in a power play to take control of Parkway over the last two months.


Integrated Healthcare launched a partial offer of S$1.18 billion (RM2.76 billion) in late May, which was to expire yesterday, to take control of the healthcare group.

Subsequently, Fortis made an offer to buy the remaining shares it did not own at S$3.80 (RM8.89) per share, or for a total of S$3.2 billion (RM7.49 billion) in early July.



Some analysts quoted in previous news reports said that an offer above S$4 (RM9.36) per share would be deemed expensive.


"The deal was clinched at a good price, which is below the S$4 per share threshold. Both parties came to a win-win situation which allowed Fortis to walk away and turn over its shares to Khazanah," sources said.


The source added that the combined Khazanah-Fortis shareholding tips the scale heavily towards Khazanah taking control of Parkway as it it now just 1.2 per cent shy of a 51 per cent controlling stake.


Integrated Healthcare director Quek Pei Lynn said in a statement issued yesterday that Parkway shareholders have the flexibility to accept the VGO for some or all of their shares.

The VGO price is a 31 per cent premium to Parkway's last traded price of S$3.02 per share on May 26, which is a day before Khazanah's partial offer announcement.

The share was suspended yesterday pending the material announcement.


"Shareholders who remain invested in Parkway, can continue to participate in Parkway's growth as part of the leading integrated Pan Asian healthcare services provider listed in Singapore," Quek added.


Integrated Healthcare director Ahmad Shahizam Mohd Shariff said a successful VGO will help create Asia's premier regional healthcare platform.

The success of the VGO will be based on receiving sufficient acceptance, in which Integrated Healthcare owns more than 50 per cent of Parkway shares.

Integrated Healthcare told SGX yesterday that it plans to maintain Parkway's listing on the main board of the exchange.


The VGO closes at 5.30pm on August 16.


The Singapore branches of CIMB Bank Bhd and Deutsche Bank AG are the financial advisers for the VGO.




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