Chennai, March 11, 2014 : Apollo Hospitals has deferred plans to raise funds by listing a business trust on the Singapore Exchange, Preetha Reddy, Managing Director, told Business Line .
Speaking on the sidelines of an event, she said the move will wait for the hospital expansion plan currently under way, which is expected to boost valuations during listing time.
Business trust
To list a business trust in Singapore, a company should set up an entity in the city-state to act as a trustee, which will be entrusted with legal ownership of some of the sponsor’s properties.
The investors will buy units – as opposed to shares – of the business trust and will receive dividends from the revenues.
According to the Monetary Authority of Singapore Website, there are 23 registered business trusts, with Indian-origin trusts such as Ascendas India Trust, Indiabulls Properties Investment Trust, and Religare Health Trust also figuring in the list.
‘Deferred’
Denying talk of scrapping the listing proposal altogether, she said: “It has just been deferred. The expansion will give us a better standing when we go to list, and will improve our rating.” The time of listing has yet to be finalised.
Apollo has announced plans to add 15 more hospitals to the network of 36 functional units, which will take up investments of Rs. 2055.5 crore, company officials told investors in a conference call in February.
Apollo’s peer Fortis Healthcare had raised $510.7 million in October 2012 by floating its Religare Health Trust in Singapore.
