TPG in $685m hospital exit

The firm will reportedly earn three times its intial investment in selling its 24% stake in Singapore-listed Parkway to Indian hospital chain Fortis.

TPG Capital will sell its 23.9 percent stake in Parkway Holdings, a Singapore-listed provider of healthcare services, to Indian healthcare provider Fortis for $685.3 million. 

TPG first invested in Parkway in 2005 when its Asian affiliate Newbridge Capital and TPG-Axon Capital, a hedge fund subsidiary of TPG, acquired a 26 percent stake in the company for $188 million. The US private equity firm then made subsequent investments in Parkway between 2005 and 2008, investing just under $358 million in all, according to Reuters. 

TPG will make a return of three times its original investment after considering dividends and borrowings, a banker familiar with the deal told the newswire. 

The firm is currently the largest shareholder in Parkway, with its interest just larger than the 23.3 percent stake owned by Malaysian sovereign fund Khazanah Nasional. 

Parkway is one of Asia’s leading healthcare providers. The company has a network of 16 hospitals with 3,400 beds across six countries: Singapore, Malaysia, Brunei, India, China and the UAE. Parkway has a market cap of $2.4 billion.

Headquartered in New Delhi, Fortis was incorporated in 1996. The company recently acquired 10 Wockhardt hospitals. It now has a network of 62 hospitals with the capacity to increase inpatient beds to 10,000 beds. 

This deal marks TPG’s second large exit in Asia in recent months. It is estimated the firm received A$1.3 billion when it sold its stake in Myer Group, the Australian retail business, which raised A$2.2 billion through an initial public offering of shares in October 2009.