Fortis Healthcare Holdings Ltd, the promoter firm of the second largest domestic hospital chain, Fortis Healthcare, additionally pledged 3.3 crore shares or around 8% stake on July 9, taking the total pledged shares in the company to 37.78%. This comes at a time when the company is raising funds to support its $2.3-billion full general offer to acquire the remainder 74% in the Singapore-based Parkway Holdings.

Fortis Healthcare, in a filing with the Bombay Stock Exchange, said its holding firm pledged 3.3 crore shares on July 9, taking the total number of pledged shares to 15.3 crore shares, which accounts for 37.78% of the total outstanding shares of the company.

The company, however, did not disclose the amount of fund it has raised through the pledging of shares. The latest pledging comes two days after FHHL had revoked 56 lakh shares and weeks after the promoters revoked around 3.9 crore shares, comprising around 10% in the company.

Fortis is locked in a battle with Malaysian government fund Khazanah for a controlling stake in Parkway. Khazanah in May launched a $835-million partial takeover offer to raise its stake in Parkway to 51.5% from the current 23%. Fortis is understood to have roped in a consortium of banks led by Axis Bank to finance its offer that will close on August 12. Khazanah, which has extended its offer till July 26 (a decision taken in most likelihood to study the offer document of Fortis), is expected to launch a better offer any day now. Khazanah?s earlier offer failed to elicit favourable response among the Parkway shareholders and the investment fund could not even manage to up its take by 2%. This is because Fortis declared a bidding war by launching a marginally better offer in terms of price.

It could choose to sweeten its price beyond S$3.8 per share and continue with a partial offer or can launch a full general offer matching Fortis’ price or even better it. Many analysts in Singapore and Malaysia are expecting Khazanah to make an offer beyond S$4 per share.This could compel Fortis to rethink its options.

As per the BSE information as on March 31, 2010, FHHL held a 76.32% stake in Fortis Healthcare. Fortis is the largest stakeholder in Parkway and has 25.37% stake. Khazanah is the second largest shareholder in Parkway, the largest listed hospital operator in Asia with a 23.3% stake. The rest is held by independent investors.