Fortis has agreed to buy the stake from buyout firm TPG Capital in a deal that follows the Indian company's $187 million acquisition in August of 10 hospitals from unlisted Wockhardt Hospitals.

This latest deal will increase Fortis' hospital network to 62, which the company said would make it the biggest hospital network in Asia, with more than 10,000 beds.

Parkway has 16 hospitals with 3,400 beds spread over six countries, including India.

The deal values Parkway shares at S$3.56 each, higher than its Thursday closing price of S$3.12, Malvinder Singh, chairman of Fortis Healthcare who will be Parkway's chairman, told reporters. That would represent a 14 per cent premium.