Companies

Fortis Global offers to pick controlling stake in Dental Corp

Our Bureau New Delhi | Updated on February 25, 2011




Fortis Global Healthcare Holdings Pte Ltd on Friday said it has offered to increase its stake in Australia's Dental Corporation to between 50.1 per cent and 58.6 per cent in a bid to take management control. In December 2010, Fortis Global had agreed to acquire 33 per cent of the Australian dental chain.

Fortis has now entered into a takeover bid implementation deed with Dental Corporation Holdings Ltd under which the former will make a proportional offer to acquire up to 30 per cent of each Dental Corporation's existing shareholding.

To buy Caledonia's shares

The Singh family-owned Fortis Global has also made an offer to buy Caledonia's convertible notes and shares representing approximately 16 per cent of the Dental Corporation shares on a fully diluted basis. Dental Corporation has 142 practice locations throughout Australia and New Zealand and has fixed a target of 200 practices by mid-2012. The Fortis offer values it at approximately $400 million.

Fortis said the offer is subject to a number of customary conditions, including Dental Corporation shareholder approval and approval under the Australian Foreign Acquisitions and Takeovers Act 1975.

“Dental Corporation directors unanimously support the proportional offer and recommend that Dental Corporation 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,” the company said.

New vertical in Fortis portfolio

Mr Malvinder Singh, Executive Chairman of Fortis Global and a director of Dental Corporation, said, “The Dental Corp model adds a new vertical to the clinical competencies within Fortis Global. We will continue to support the Dental Corporation management team to deliver the company's growth forecasts in Australia, New Zealand and potentially take this unique model to new geographies in Asia.”

Over the past five months Fortis Global has been investing in small hospitals in the Asia-Pacific region. In November 2010, it completed the acquisition of Quality Healthcare Ltd in Hong Kong and later in January, the company acquired its initial significant stake in Dental Corporation. On Thursday, Fortis Global made a foray into Singapore by acquiring a specialised cancer hospital that is under construction.

tkt@thehindu.co.in

Published on February 25, 2011

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