* Hong Kong business valued at $300 mln-sources
* Fortis sold assets in Australia, Vietnam recently
* Sale part of India Fortis plan to scale back from overseas
By Saeed Azhar and Stephen Aldred
Aug 19 Japan's Mitsui & Co and U.S.
private equity firm Carlyle Group have submitted
preliminary bids for Quality Healthcare Medical Services, which
is being sold by India's Fortis Healthcare and is
valued at around $300 million, people familiar with the matter
Established in 1868, Quality Healthcare is the largest
provider of healthcare services to corporations in Hong Kong,
with a network of 50 medical centres, more than 500 affiliated
clinics and more than 20 dental and physiotherapy centres.
At least 10 suitors submitted bids by last week's deadline,
including buyout firm Advent International and other companies,
one of the persons with direct knowledge of the matter told
The suitors are attracted by the opportunity to invest in
private healthcare in China, which is one of the areas that is
consistently growing. JPMorgan is advising the seller,
sources said. JPMorgan declined to comment.
Mitsui and Carlyle declined to comment and Advent also did
not comment. A Fortis spokesman in India declined to comment.
Quality Healthcare was bought by a vehicle owned by
Malvinder Mohan Singh and his brother Shivinder in October 2010
for HK$1.5 billion or about $190 million. In 2011, Fortis
Healthcare had acquired all the international operations of the
The sources declined to be identified as the discussions
A bid by Mitsui, which also owns about 20 percent stake in
Malaysia's state investor Khazanah-backed IHH Healthcare
, is in line with other Japanese companies that have
stepped up their overseas acquisitions.
The sale comes as Fortis scales back its international
presence to focus on its home market and pare down debt after an
acquisition spree that saw the company buy hospital and medical
service firms in Singapore, Hong Kong, Vietnam and Australia.
Private equity firm TPG Capital and Singapore tycoon Peter
Lim's Thomson Medical were also weighing a bid for the business,
but it was unclear if they actually submitted one. A spokeswoman
for Lim declined to comment while TPG wasn't immediately
available to comment.
Earlier this year Fortis sold its Australian unit, Dental
Corp, for A$270 million ($247 million) and has agreed to sell
its Vietnam unit for $80 million to Singapore-based Chandler
The firm currently has a listed arm in Singapore, Religare
Health Trust, which owns hospital-related assets
managed by India's Fortis.
The India-listed flagship firm Fortis suffered a loss of 2.2
billion Indian rupees ($36 million) in the first quarter, hit by
higher operating costs, interest expenses and a one-time foreign