Monday, February 2, 2009

Fortis picks up 58% in Mauritius hospital

Making its first international foray, Fortis Healthcare is investing $3.5 million for picking up a 58% stake in a hospital in Mauritius. Fortis has tied up with a diversified industrial group based in Mauritius, CIEL to acquire a controlling stake in Clinique Darne, now rechristened Fortis Clinique Darne.

"Our total investment is $7 million which will be shared jointly between the partners," Fortis Healthcare CEO and MD Shivinder Mohan Singh told TOI, adding "going international is not a focus for the company and this is a one-off growth opportunity which the group spotted and has invested in".

The 120-bed hospital is an interesting opportunity, as it would enable Fortis to leverage medical value travel by creating a gateway to the group's network in India, and develop it as a hub for medical tourism in Mauritius, he said.

Fortis through the acquisition will get a seamless entry into Mauritius where the majority of the population nearly 60% is Indian. It has taken over the operations and management of the hospital and plans to develop it into a large super specialty hospital.

The Mauritius hospital had operating margins of 21% on revenue of Rs 50 crore in 2007-08. The company is on track to have 40 hospitals by 2012, with two three international forays, he said. The company is planning to raise Rs 1000 crore through a rights issue this year to help fund future investments and green-field projects.