PE firms bid for Fortis’ Quality Healthcare - report

According to Reuters, the private healthcare company is valued at around $300 million.

Quality Healthcare is the largest provider of healthcare services to corporations in Hong Kong. It has a network of 50 medical centers, over 500 affiliated clinics and more than 20 dental and physiotherapy centers. In 2002, it began operating in China via a joint venture with International SOS.

The business was bought by Fortis in October 2010 for HK$1.5 billion ($190 million) It recorded revenues of INR9.54 billion in FY13, up 26% from the previous year.

The sale comes as Fortis attempts to reduce debt, which stood at INR51.6 billion ($815 million) as of March, by selling parts of its international business.

The firm suffered a loss of INR2.2 billion in the first quarter, hit by higher operating costs, interest expenses and a one-time foreign exchange loss.

Earlier this year Fortis sold its stake in Dental Corporation Australia, to Bupa Australia Health for A$270.38 million, and its Vietnam subsidiary, Fortis Hoan My Medical Corporation, to Chandler Holdings for $80 million.

Fortis retains its healthcare business in India, Singapore, Mauritius, Sri Lanka and Dubai.

The company also issued foreign currency convertible bonds (FCCBs) worth up to $30 million on the Singapore Exchange last month.

In April, Fortis struck a deal with the International Finance Corporation (IFC) to raise $100 million through a mix of preferential allotment and FCCBs. Other investors in the hospital chain include GIC Private, PremjiInvest and Standard Chartered Private Equity.

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