*Parkway Holdings* -
With Integrated Healthcare's partial offer to acquire 313m shares at PWAY at S$3.78/share, the offer implies an EV/EBITDA multiple of 20x. With IH also stating that it reserves the right to revise the offer from partial to a voluntary GO, the question on everyone's mind now is will Parkway gap to to S$3.78/sh when it resumes trading.
Even if the offer stays pat on current terms, there is a possibility that fund mgrs will look at the scenario of Fortis Healthcare making a counter bid to IH's offer.
Since Fortis Healthcare bought 23.9% in Mar, it has increased its deemed interest to 25.2% as of now. While Fortis has not articulated its strategy to extract synergies from Parkway, it is a strategic vehicle for Fortis to capture more share in the Asian healthcare market. IH/Khazana's control of Parkway could potentially pose a change in Parkway's regional expansion initiatives.
At S$3.78/share, Parkway would be valued at 20x EV/EBITDA. While this is rich on regional comparison, it is still below what Apollo Hospital and Fortis Healthcare is trading at. Khazana is also known to be an emotional buyer so Fortis could technically put in a counter bid just to trigger a counter bid from Khazana.
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