Fortis Healthcare may avoid a hurried response to counter Malaysian investment fund Khazanah's bid to acquire management control over Asia's largest health care chain Parkway Holdings from Fortis which holds the largest number of shares in Parkway.
The Singh-family promoted company, which runs the largest chain of private hospitals in India, may in turn adopt a wait and watch policy, with options open to respond in case of an imminent threat to its management control over Parkway, sources close to Fortis said.
According to the sources, what has given Fortis breathing space is the value at which the shares of Parkway Holdings are being traded in the Singapore Stock Exchange. While Khazanah's offer was to gain 51.5 per cent stake in Parkway through a purchase of its 313 million shares at S$3.78 (around Rs 126) a share, Parkway shares were trading at almost the same price (S$3.72 on Friday) during the week.
"Unless Khazanah sweetens its offer, which is reported to be unlikely, the response may not be so good," said an analyst who tracks health care sector.
Experts feel Fortis need not counter Khazanah's offer if the chances of the Malaysian government-owned fund acquiring majority stake in the company is weak.
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