Fortis accepts Malaysia’s IHH Healthcare's Rs 4,000 crore investment
Fortis hospital in New Delhi Photograph: (Reuters)
The Board of Directors of Fortis Healthcare Limited has accepted the investment proposal by Malaysia’s IHH Healthcare Berhad to invest Rs 4,000 crores at a price Rs 170 per share.
The cash-strapped Fortis said IHH will invest Rs 40 billion at Rs 170 per share in the company that operates about 30 private hospitals in the country. The offer is at a 19.5 per cent premium to Fortis' closing price on Thursday.
The other bidder for Fortis was the consortium of Manipal Hospitals and TPG.
The development comes a little more than a year after IHH pulled out of bilateral negotiations with the then promoters Malvinder and Shivinder Singh.
The investment will also address the liquidity concerns of India’s second-largest hospital chain, Fortis said in a statement on Friday morning.
The IHH said in a separate statement it expects the deal to be completed in the fourth quarter and does not expect it to have any material effect on profits for the fiscal year ending Dec 31.
IHH is present across 9 countries through 49 hospitals and more than 10,000 licensed beds