Singapore/Malaysia/India – Parkway Up on $835 mn Bid; Eyes on Fortis
Parkway Holdings shares jumped 25 per cent after Malaysian sovereign fund Khazanah offered $835 million for control of Singapore’s biggest private healthcare group, leaving Fortis Healthcare to make the next move in a potential takeover battle.
India – Ranbaxy scion unlikely to relent in Parkway battle
This time the surprise is on Malvinder Singh. Two years ago, Singh and his brother Shivinder sold their controlling stake in Ranbaxy Laboratories, a leading Indian drugmaker built by their grandfather, to Japan’s Daiichi Sankyo — an unlikely move in a country where families rarely sell.
We predicted this situation back in 2008 in the PHM International report titled “The Growing Healthcare Worker Shortage: An Investment Risk, A Security Risk.”
OK, not exactly this scenario, but close.
These two articles are most interesting to us in that it leaves open the question, what is Khazanah up to?
Long time readers know of the Khazanah position in Parkway vis à vis Pantai, from the June 2007 issue.
So, is this simply an old fashion corporate feud….now in Asia’s healthcare space? Fortis’ Singh v Khazana? Or something else?
We think these stories actually represent a significant shift in resource allocation. And Malaysia is exerting its influence.
What we predicted, and wrote back in the September, 2008 report was:
“For investors and private healthcare companies in emerging markets, in fact in all markets, the need to grow and retain skilled medical workers has huge implications and will hamper growth in some regions for years to come. At the earliest stages private sector players will compete head-on with the government backed players.”
And in the report’s conclusion we wrote:
“Any investment in emerging markets, at some level, should view healthcare more in terms of manufacturing than as a service sector. Assuring the supply chain, the human reserve of knowledge and skills, will become necessary for any strategic investor.”
Much like the tie-up between China’s port construction in Brazil and its soya bean contracts, we see Khazana’s over emphasis on Parkway Holdings as having its basis in national security and the foresight to assure supply chain resources…………HK