Dental Corp gets taken over

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Fortis Healthcare CEO Vishal Bali

Following on from the revelation just before Christmas that Fortis Global Healthcare Holdings Pte Ltd (FGH) had purchased a $100m stake in Dental Corporation, Fortis has now announced it will make an offer to shareholders to acquire further shares. In a press release at the end of last week, Dental Corporation Holdings Limited (DCH) and Fortis Global Healthcare Holdings Pte Ltd (FGH) announced that they have entered into a Takeover Bid Implementation Deed.

Under the bid, FGH has agreed to make an offer to each DCH shareholder to acquire up to 30 per cent of their existing shareholding at a price of $2.54 per share and separate offers to acquire 30 per cent of the employee options held by DCH option holders.

The share acquisition requires approval under the Foreign Acquisitions and Takeovers Act 1975.

DCH directors unanimously support the proportional offer and recommend that DCH shareholders accept the proportional offer, in the absence of a superior proposal and an independent expert concluding that the proportional offer is fair and reasonable.

Mark Evans, Dental Corp’s executive chairman, said, “We welcome the proportional offer from FGH which was flagged at the time of the initial investment in DCH by FGH in December 2010. The proportional offer provides our shareholders with an opportunity to realise some of their investment in DCH in cash while maintaining the majority of their shareholding.”

The proportional offer values DCH at approximately $400m and represents an 18 per cent premium over the price which FGH invested in DCH in December 2010.

Fortis Global Healthcare Holdings Pte Ltd (FGH) is owned by the family of Malvinder Mohan Singh and Shivinder Mohan Singh (Singh Family). The Singh Family is also the owner of a majority stake in Fortis Healthcare Limited, which is separately listed and is a leading hospital operator in India. FGH, through its participation in various healthcare entities, has a presence in India, Hong Kong, Australia, New Zealand, Dubai and Mauritius.

Dental Corporation Holdings Limited represents FGH’s third investment in five months and marks an important step in achieving the Singh family’s vision of creating a premier integrated healthcare delivery system in Asia and Australia region. In November 2010, FGH completed the acquisition of Quality Healthcare Ltd, the largest Primary Healthcare Network in Hong Kong and later In January 2011, FGH acquired its initial significant stake in Dental Corporation Holdings Limited. On 23 February 2010, FGH made its first entry into Singapore by acquiring an under construction specialised cancer hospital in the prime ‘Adam Road’ precinct.

Malvinder Singh, chairman of FGH and a director of DCH said: “FGH looks forward to continuing to support the DCH management team to deliver the company’s growth forecasts in Australia and New Zealand and potentially into new geographies in Asia. This investment is the next step in the development of the relationship between DCH and FGH”.

 

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