Beginning of this week saw a more matured decision from India Inc, where Singh brothers of Forties, booked the profit in Parkway and exited the race for controlling stake in Parkway hospitals in Singapore.
This decision is very significant. When Forties took 25% control in March, Malvinder Singh announced that he would relocate to Singapore to run Parkway, leaving Forties operation to younger brother Shivinder Singh. Forties even drafted the strategy of roping in the low cost offshore operations to reduce the cost of service.
This clearly shows how serious Singh brothers were with this deal and as per the press reports they were in advanced discussions with banks to raise the funds. To return back to India, in less than 5 months would be a huge face loss, if you have to consider business circles.
But, by agreeing to sell their stake to Khazanah, the Malaysian wealth fund, for profit of $116 million, the brothers have shown that they are practical businessmen, their head is their heart. There are no sentiments in the business!
Singh brothers have, in the past, have shown that they think ahead of time and think through head. When they decided to sell Ranbaxy, the family business, it was India’s largest, with interesting range of challenges on patent in the west. But, pharmaceuticals had become the business of big bucks and soon they started realizing this fact and opted for a partner for research and development. One thing led to another and the partner Daiichi Sankyo ultimately bought Ranbaxy.
Anyway, one question still needs answer is, why should a fund be interested in running hospital chains? It would have been better bet for Fortis to acquire it and run it, given Singh brother’s experience in India.
This is the mystery.
Subscribe to:
Post Comments (Atom)
1 comment:
Hi, very interesting post, greetings from Greece!
Post a Comment