Fortis not in talks with Sri Lanka's Asiri Hospitals

Fortis Healthcare Ltd on Thursday said it is not in talks with Sri Lanka's Asiri Hospitals to buy clinics there and a senior official said the island nation is not a priority.                                            

The Business Standard newspaper reported on Thursday that Fortis is close to a deal with Asiri to buy three hospitals for Rs20-25 billion ($43-$54 million), citing investment banking sources.                                           

"We deny we are in talks with the said company," added Sudarshan Mazumdar, a spokesman for Fortis, over the telephone.                                           

Another Fortis official, who declined to be named as he is not authorised to speak to the media, told Reuters that Sri Lanka could be served by the chain's hospitals in south and east India.                                           

"Sri Lanka is not a priority for us," the official said. "The very fact that we have properties in east and in Chennai means we can leverage them for patients from Sri Lanka."                                           

Fortis has a hospital in the southern city of Chennai, which is less than two hours flight time away from the Sri Lankan capital Colombo. 

Fortis has said it would buy hospitals in India and neighbouring countries as it looks to expand its chain beyond its northern India home-base.                                           

It most recently agreed to take over 10 hospitals from Wockhardt Hospitals Ltd, some of them in Mumbai and Bangalore, a deal that would take its network to 58 hospitals with 5,180 beds.                                            

Shares in Fortis were up as much as 5.6% in morning trade, before easing to 4.7% up on the day at Rs122.95 by 12.34 pm.

The Mumbai market was up 0.4%.