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India's Fortis to sell Singapore unit for $83.5m

  • Holden Mann
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India's Fortis Healthcare will sell its Singapore-based diagnostics arm RadLink-Asia to Fullerton Healthcare Group for S$111 million ($83.5 million).

RadLink is Fortis' last major international asset. In a statement, Executive Chairman Malvinder Singh and Executive Vice Chairman Shivinder Singh said the sale "is in line with our strategic decision to intensify our focus on our core hospital and diagnostics business in India."

The transaction will be concluded on May 12.

The company tried to sell RadLink last year to Medi-Rad Associates, a division of Malaysia's IHH Healthcare, for S$137 million. However, that sale was stopped in March by the Competition Commission of Singapore due to concerns about possible reduction in competition in the local healthcare market.

In recent years, Fortis has abandoned its overseas expansion plans. It now derives nearly all of its revenue from operations in India, though it does still have healthcare facilities in Dubai, Mauritius and Sri Lanka.

Fortis raised $5.7 million from Standard Chartered Private Equity and $100 million from the International Finance Corporation (IFC) in 2013, and the company's diagnostic arm Super Religare Laboratories received $66 million from IFC and Jacob Balls Capital in 2012. Fullerton, for its part, was backed by Singapore's Southern Capital Group until 2013.

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