Parkway Holdings (P27.SG) fails to hold on to early gains, and is off 1% at $3.08 in thin volume vs high of $3.12 (+0.3%), reported Dow Jones Newswires.
The stock was hardly moved by news of healthcare group launching initial sale of its medical suites at upcoming Novena hospital in Singapore, despite exercise being touted by analysts as share price catalyst.
Indian hospital chain Fortis Healthcare (FOHE.BO) will buy 23.9% of Singapore’s Parkway Holdings (PARM.SI) from US buyout firm TPG Capital in an expansion drive into Asia and the Middle East.
The $959 million deal will give Fortis a foothold in Singapore and Malaysia and make it the biggest private hospital network in Asia, it said.
Parkway Holdings (P27.SG) snaps winning streak of last three sessions, losing 1 cent at S$2.92, as broad market pullback encourages profit-taking.
Selling not widespread as volume light, with improvement in FY09 results, expectations of strong demand for healthcare group’s medical suites sustaining stock’s recent uptrend.
Parkway Holdings, Asia’s biggest hospital operator by sales, posted fourth-quarter net income of $24.8 million. The company said Tan See Leng will become chief executive officer from April 16, replacing Lim Cheok Peng.
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Private hospital operator Parkway Holdings says the company, through its unit Westront has today entered into a sale and purchase agreement to sell to Goldstream Capital by way of a married deal its entire shareholding in Auric comprising 27,493,311 shares in Auric Pacific Group for $12.9 million (or 47 cents per share) plus an additional sum of up to 27 cents per share should Goldstream Capital dispose of any of the shares at above 47 cents each within a period of 12 months after the completion of the acquisition.
