"The company has started the process of divesting its primary care chain in Hong Kong, Quality Healthcare, and some leading hospital chains and financial investors have shown keen interest in the asset. Investment bank JPMorgan is the lead advisor to the deal," said the other person familiar with the proposed transaction.
"The deal for Quality Healthcare is expected to be valued between $280 and $320 million," said one of the persons.
The advisors are expected to start the process of inviting bids shortly.
"After the divestment of its assets in Vietnam and Hong Kong, Fortis Healthcare, which had invested about $665 million in September 2011 for its foray into international markets, will recover its entire investment while retaining its presence in four countries - Singapore, Mauritius, Sri Lanka and Dubai," said a top banker familiar with the development. Spokespersons of Fortis HealthcareBSE 1.46 % and JPMorgan declined comment. "We cannot comment on market speculation," the Fortis spokesperson said. Richard Chandler Corporation did not respond to queries.
Richard Chandler, a Singapore-based international business group founded by New Zealand-born entrepreneur Richard F Chandler, has interests in the energy, consumer, financial services and healthcare sectors with operations in Asia, Africa, the Americas, Europe and the Middle-East. It has portfolio investments in some Indian banks such as SBIBSE 0.28 %, HDFC BankBSE 0.67 %, ICICI BankBSE -0.51 % and Yes BankBSE 1.37 %. In all, Fortis Healthcare plans to raise about $800 million ( Rs 4,536 cr) from asset sales as well as issue of equity in the first six months of the current fiscal ending September 2013. The fund-raisings are intended to cut its debt burden of Rs 7,000 crore.
