Fortis Healthcare to raise funds for acquisitions

02-Mar-2010

Hospital chain Fortis Healthcare plans to raise Rs 125 crore to acquire hospitals, some of them in the fiscal year that begins April 1, its managing director said on Thursday. Last week, its board approved a proposal to raise the money through preference shares, overseas shares or foreign currency bonds. "It's better to keep the warchest ready for any opportunity rather than start scouting for money when we need it," Shivinder Mohan Singh told Reuters in an interview.

"We know what we want and we know what's available. We want something that is complementary for us," he said, but declined to provide details. The Indian healthcare industry is estimated to touch USD 14.2 billion by 2012, propelled by rising income levels, changing demographics and shift in illness patterns in the country, consultancy firm KPMG said in a report last year. Fortis operates 38 hospitals and will add four more by December, leaping ahead of a target to have 40 hospitals by 2012. It is also building a further four.

Singh said Fortis was targeting revenue of USD 1 billion by 2015, from about USD 350 million currently, but the deals would help achieve this goal faster. Fortis' last acquisition was the USD 187 million buy of 10 hospitals from unlisted Wockhardt Hospitals last August. Shares in Fortis rose 107% in 2009, outperforming the Mumbai market's 81% rise. So far in the new year, they are up 15% compared with the broader market's 6.5% decline.

Source : www.insuremagic.com