Parkway Updates

Business Times reports that a source close to Fortis Healthcare has dismissed earlier reports that Khazanah could resort to unilaterally buying out Parkway’s 40% stake in Pantai should its partial offer for Parkway fail, as there are no provisions in the JV that allow for that Pantai accounts for almost a third of Parkway’s EBITDA, and owns and manages two lucrative Msia govt health concessions due to expire in 2011/12. Speculation was that Khazanah could opt not to renew them if it fails to secure majority control of PWAY. But given Khazanah owns a higher 60% direct stake in Pantai, such a move would affect Khazanah significantly as well. Fortis continues to keep its options open with regard to a counterbid for Parkway.