Fortis Healthcare has announced that it will be buying 23.9 per cent stake in Parkway Holdings for $685 million.

While Fortis is an Indian hospital chain, Parkway is a Singaporean healthcare provider. The takeover has been planned by Fortis to get access to Southeast Asian market.

Fortis will be buying the stake from TPG Capital.

As per the deal, Fortis will be buying stake at S$3.56 per share. This is higher than Parkway's share closing price on Thursday which was S$3.12. This means that Parkway is getting a 14 per cent premium over its share price.

TPG is a buyout firm and the deal comes in line with an already existing agreement. The Indian company had bought, in August last year, 10 hospitals from Wockhardt. The total worth of that deal was $187 million.

Meanwhile, it has been decided that after the takeover, Malvinder Singh, Chairman of Fortis Healthcare will hold the same post in Parkway.

Post the deal, Fortis, which already has a 10,000 bed capacity in India will add another 3,400 beds across six countries.

Parkway Holdings has 16 hospitals in various countries, including India.