Hospital chain Fortis Healthcare, promoted by Singh brothers Shivinder and Malvinder, is set to spread its wings across Asia by purchasing close to 24% stake in Singapore-based hospital network Parkway Holdings for $685.3 million.

Fortis has 46 hospitals in India, while Parkway runs hospitals in Singapore, China, Brunei, Malaysia and India. The acquisition would make Fortis the largest healthcare chain in Asia with more than 10,000 beds, Fortis said.

?This acquisition will significantly expand our footprint across the region and place us strategically for geographical and clinical leadership in Asia, a big step closer to our vision of establishing a global healthcare delivery network,? Malvinder Singh, the current chairman of Fortis Healthcare, said in Singapore.

Fortis intends to seek four seats on the board of directors of Parkway and nominate Malvinder Singh as the board chairman. According to Parkway?s website, Fortis will be the company?s largest shareholder after the deal.

Singapore-listed Parkway has a market capitalisation of $2.4 billion.

Fortis had a consolidated net profit of Rs 2,275 crore in the third quarter ended December 31, 2009.

Fortis informed the National stock Exchange that the definitive deal to buy 23.9% stake in Parkway from TPG Capital (formerly Texas Pacific Group) was an off-market deal. After the announcement of the deal, which valued Parkway shares at $3.56 each, the company closed trading on NSE with a 6% gain at Rs 177.95. Overseas reports said TPG, which invested about $500 million in Parkway between 2005 and 2008, will make a three-fold return on its original investment once dividends and borrowings are taken into account.

According to HDFC Securities? institutional research vice-president Ranjit Kapadia, the stake purchase will allow Fortis to attract more wealthy customers who seek healthcare services in Asia to its own facilities in India. This will help Fortis to utilise its capacity better. But the flipside of any company that makes a series of acquisitions is that its cash flow may be affected. Earlier acquisitions of the company include 10 hospitals from Wockhardt Hospitals for $187 million and New Delhi-based Escorts Heart Institute for Rs 585 crore. Calls made to Fortis MD Shivinder Mohan Singh remained unanswered. The firm is expected to disclose more details about the deal on Friday. Promoters and promoter group own 76.47% in Fortis and the public holds 23.54%.