BOI eats its words

The Board of Investment (BOI) is eating its words now that adamant corporate raider Harry Jayawardena has accomplished what he set out to do -- acquire Lanka Hospitals Corporation Limited (LHCL), the holding company of Apollo Hospitals. The new owners (Sri Lanka Insurance) are also said to be negotiating with the Parkway Hospitals Singapore, owners of the Gleneagles Hospital, to replace Apollo management. Last week the BOI said that they ‘wish to confirm that the terms of the BOI agreement would be continued provided that all terms and conditions as provided for in the agreement are complied within a period of six months from the date of transfer of LHCL shares.’

This came on the back of Minister Rohitha Bogollagama, in charge of the BOI, (after some ‘arm twisting’ by Indian High Commissioner Nirupama Rao) lashing out at Jayawardena saying that they will withdraw all concessions granted to LHCL under BOI if the ownership changes hands. However all that changed with the BOI reverse-gear policy on the original threat.

Industry sources believe a Gleneagles management would be ‘too costly’ for Jayawardena. “They may just be costlier that Apollo management,” one source said. He said that the company is on the path of organic growth, and they are focusing on expanding the network of facilities and medical tourism to drive growth in the coming years. Parkway owns three premier hospitals in Singapore – Mount Elizabeth, Gleneagles and East Shore Hospitals. It also has a network of hospitals in Malaysia, India and Brunei.