Fortis buys Singapore diagnostic chain

Hospitals operator Fortis Healthcare (India) Ltd said it paid S$62.9 million to buy 85 percent in RadLink-Asia Pte Ltd, a Singapore-based diagnostic chain, sending Fortis shares up near 4 percent in a weak Mumbai market.

RadLink-Asia will provide diagnostic platform for Fortis Healthcare's new specialty hospital coming up in Singapore, apart from giving the Indian hospital operator an entry into the premium diagnostics and molecular imaging market there.

Radlink operates in diagnostic imaging, molecular imaging, cyclotron and general purpose clinics segments.

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Fortis Healthcare is owned by billionare brothers Malvinder and Shivinder Singh.

The acquisition was done through Fortis Healthcare International, a wholly owned unit of the Indian company.

Shares of Fortis Healthcare rose 3.75 percent at the open on Tuesday. The stock was up 2 percent at 106.8 rupees by 0530 GMT in a Mumbai market that was down 0.32 percent.

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"Although the acquisition is in sync with Fortis' plans for South Asia, it will definitely put pressure on its leveraged balance sheet," said Siddhant Khandekar, analyst at ICICI Direct.

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Khandekar said it was not possible to say if the deal was positive unless the annual sales of the acquired company were known.

Fortis Chairman Malvinder Singh said late last year the hospitals operator would raise $175 million in debt to acquire Fortis Healthcare International.