Symphony Capital Partners, the Singapore private equity firm that sold its stake in hospital operator Parkway Holdings in 2008, was sued by a former partner who claims he was deprived of a share of the profit.
Sanjay Sehgal, who left Symphony in mid-2005 after almost ten years with the firm, claims in his complaint he’s entitled to a US$4.4 million ($5.8 million) bonus, which includes a share of the profit from the sale to Parkway. A hearing of the case began in Singapore’s High Court today.
Parkway Life REIT (C2PU.SG) +2.1% at $1.46, just off new 52-week high of $1.48, on optimism over Malaysian sovereign fund Khazanah Nasional becoming controlling shareholder of sponsor Parkway Holdings (P27.SG), according to Dow Jones.
Development could pave way for healthcare Parkway Life REIT to enlarge its portfolio via acquisitions in Malaysia. “With Khazanah as the major shareholder of Parkway, we think this could also be a positive for Parkway Life REIT, as Parkway Life REIT has been looking to acquire hospital assets in Malaysia,” says DMG analyst Lynette Tan; tips hospitals in Pantai Group, company jointly owned by Parkway and Khazanah, as potential targets.
Orderbook quotes tip resistance at $1.50.
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Khazanah’s latest offer will be around $3.95 per share of the Singapore healthcare firm in response to the $3.80 offered by rival suitor Fortis Healthcare (FOHE.BO) of India, the sources said.
Parkway Holdings (PARM.SI) has suspended its shares ahead of an announcement by Malaysian state investor Khazanah, whose US$835 million ($1.1 billion) partial offer for the firm expires late on Monday.
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Controlled by Indian billionaire brothers Malvinder Singh and Shivinder Singh, Fortis is pitted against Malaysian state fund Khazanah for control of Parkway Holdings (PARM.SI).
Parkway Holdings (P27.SG) heading further below Khazanah Nasional’s $3.78/share partial takeover offer price following independent financial advisor Morgan Stanley’s description of offer as reasonable but not compelling, says Dow Jones.
Shares off 2.2% at $3.60, extending yesterday’s 1.9% fall, although still within tight $3.62-$3.92 range in place since May 31, when trading resumed after Khazanah disclosed offer.
The firm said Khazanah’s offer price of $3.78 a share exceeded Parkway’s share price prior to the offer and shareholders will still be free to decide whether or not to accept Khazanah’s offer after the vote.
Singapore’s securities regulator has given Fortis until July 30 to say whether it intends to make a full offer for hospital operator Parkway, the subject of a partial takeover bid by Malaysian sovereign fund Khazanah.
Parkway Holdings (P27.SG) off 0.8% at $3.78 in thin trade as stock continues to consolidate after briefly rising above Khazanah Nasional’s $3.78/share offer price in recent sessions, according to Dow Jones.
UK-based FrontPoint Management LLP, a unit of Morgan Stanley (MS.N), bought 110,000 more shares of Parkway Holdings (PARM.SI) at $3.85 a share for an investment client, the bank said in an exchange filing.
This adds to the 75,000 Parkway shares that FrontPoint bought last week at $3.83 a share for a “discretionary investment client”.
UK-based FrontPoint Management LLP, a unit of Morgan Stanley <MS.N>, has bought 75,000 shares of Parkway Holdings <PARM.SI>, Asia’s biggest listed hospital operator, for $3.83 a share for an investment client, the bank said in an exchange filing.
Parkway Holdings (P27.SG) rises above Khazanah Nasional’s partial takeover offer price of $3.78/share, as investors bet healthcare group will receive counter offer from major shareholder Fortis Healthcare (532843.BY).
Singapore’s Parkway Holdings (P27.SG) gaps up at opening, last +24.8% at more than 2-year high of $3.76, almost matching Khazanah Nasional’s partial takeover offer price of $3.78/share.
Nomura, which has Neutral call with $3.20 target, says Khazanah likely to improve current offer if substantial holder Fortis Healthcare (532848.BY) makes counter offer: “It should be noted that Khazanah runs the risk of gaining control of Parkway but with Fortis remaining as a shareholder with powers to block major board resolutions at Parkway.”
Khazanah is offering $3.78 a share to increase its stake from the current 23.5% in Parkway, according to a statement from the Singapore group on Thursday.
Parkway Holdings (P27.SG) +0.3% at $3.39, one of few stocks bucking broad market pullback, as healthcare group’s clear growth path supportive, according to Dow Jones.
Parkway Holdings (P27.SG) off 2.1% at $3.28 in thin trade vs $3.38 earlier (+0.9%) with investors booking some profits from early gains, run-up over last three days. Underlying uptrend still intact, with shares +24.1% since beginning February, according to Dow Jones.
Parkway Holdings, the operator of private hospitals, says profit after tax and minority interests (PATMI) excluding exceptional items, increased by 10% to $25.8 million for the three months ended 31 March 2010 (1Q 2010). Group revenue grew by 8% to $247.6 million compared to $229.6 million in the corresponding year-ago period.
Revenue from Parkway’s Singapore Operations grew by 10% to $165.3 million in 1Q 2010 compared to $150.3 million in the previous corresponding quarter. The group’s Singapore operations remain its largest revenue contributor, accounting for 67% of total revenue in 1Q.
Parkway Novena Hospital and Parkway Novena Specialist Centre, the medical suites at Parkway Holdings’ upcoming hospital and specialist centre at Novena, have seen strong interest from the medical community with all the suites available for booking in Phase One taken up in just two weeks.
