Fortis to divest stake in Dental Corporation to Bupa for Aus USD 270 Mn
Fortis Healthcare International Pte Ltd, a subsidiary of Fortis Healthcare Ltd (Fortis Healthcare) has announced its decision to sell its 64 percent stake in Dental Corporation Holdings Ltd (DC), Australia, to Bupa, for a consideration of 270 million Australian dollars.
The deal is expected to be completed in March 2013 subject to shareholder and regulatory approvals.
"As a premier healthcare company we are quick to assess the competitive landscape, the opportunities for growth and emerging trends. We are decisive in our response and bold in our actions. The move is good for Fortis as it aligns the company with its current strategic priorities. This will help consolidate our presence as one of the fastest growing healthcare companies in the region," Malvinder Singh and Shivinder Singh, Executive Chairman and Executive Vice Chairman, Fortis Healthcare Ltd., said.
Fortis had entered DC in Jan 2011 and has since added considerable value to the business growing it from 140 dental practices to 190 dental practices in Australia and New Zealand.
The model however has remained confined to the two countries and in-spite of exploration and backing has found limited acceptance in other Fortis geographies, as originally envisaged.
The DC divestment is in line with Fortis's strategic decision to focus on healthcare in Asia including India and on developing, staffing, operating and managing healthcare assets that cater to complex clinical work at the higher end of the medical delivery value spectrum.
The divestment will go towards further strengthening the Fortis balance sheet bringing it closer to its net debt to equity target ratio of 0.6x.