Fortis’ plan to divest a stake in its Singapore asset, RadLink-Asia Pte Ltd, and its subsidiaries to Medi-Rad Associates has hit a wall, with the country’s Competition Commission ruling against the deal.
In September 2014, Fortis had announced plans to sell 100 per cent of shareholding in Radlink-Asia and Radlink, Singapore, which engage in diagnostic and molecular imaging services, to Medi-Rad Associates, an indirect wholly-owned subsidiary of Malaysia-based IHH Healthcare Bhd for 137 million Singaporean dollars (over $108.5 million).
The Singaporean watchdog, however, has said the transaction could reduce competition in the market.
“Fortis continues to explore alternative value-unlocking opportunities related to RadLink, in furtherance of the company’s stated strategy to focus on India,” the company said in a statement on Friday.
The company has been on a divestment spree since 2013 and has sold several international assets, starting with Dental Corporation, Australia, in May 2013, for A$270 million (₹1,452 crore).
In August, the same year, Fortis sold its entire 65 per cent stake in Vietnam-based chain Fortis Hoan My Medical Corporation for $80 million; and Hong Kong-based Quality Healthcare for $355 million in October 2013.
The company’s shares fell on BSE on Friday, slipping 5.10 per cent, closing at ₹154.45 a piece.