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Tribune News Service
New Delhi, July 13
The second largest hospital chain in the country, Fortis Healthcare, will be acquired by Malaysian group IHH Healthcare with an infusion of Rs 4,000 crore, bringing to an end the uncertainty for the stakeholders.
The cash-strapped Fortis Healthcare, with its registered office at Mohali, was founded by Malvinder and Shivinder Singh and was the main business of the Singh family after they sold their controlling stake in Ranbaxy Laboratories.
In a meeting held on Friday, the Board of Directors decided to recommend the binding investment proposal from IHH Healthcare Berhad (IHH) to invest Rs 4,000 crore by way of preferential allotment at a price of Rs 170 per share.
This values Fortis at Rs 8,800 crore and with this infusion, IHH will get a minimum equity stake of 31% in the company.
The deal integrates Fortis into a large global healthcare platform with potential synergies with the induction of world's 2nd largest provider of integrated healthcare services (by market capitalisation) and the largest healthcare provider in Asia with presence across nine countries.
Tan See Leng, Managing Director and CEO of IHH said, "This win-win combination will make IHH the leading healthcare services provider in India, while giving Fortis Healthcare and its stakeholders certainty and clarity on the future of the group". IHH has indicated that in the long term it would rebrand Fortis hospitals into its own Gleneagles chain.
Ravi Rajagopal, Chairman, Fortis, said, "The Board is delighted to announce their approval of the IHH binding proposal. It offers strategically and financially more compelling proposition along with simplicity and certainty".
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