Malaysia’s IHH acquires controlling 31.1% stake in Fortis for $548m
14th Nov, 2018. RedNewswire/-
Malaysia’s IHH Healthcare Berhad, via its wholly-owned indirect subsidiary Northern TK Venture Pte Ltd, has acquired a controlling 31.1 per cent stake in Fortis Healthcare Ltd for $548 million.
Fortis Healthcare on Tuesday said its board has approved the allotment of approximately 23.52 crore shares to Northern TK Venture at Rs 170 per share, thereby completing the investment of IHH in Fortis.
Fortis Healthcare’s directors approved the appointment of four IHH nominees – Tan See Leng, managing director and chief executive officer of IHH Healthcare Berhad, Low Soon Teck, group chief financial officer, IHH Healthcare Berhad, Chan Boon Kheng, group head of strategic planning & business development at IHH and Bhagat Chintamani Aniruddha, director, IHH – on the Indian hospital chain’s Board. The reconstituted board will have a total of seven members with three current directors and four additional directors nominated by IHH.
Fortis indicated that following this, the mandatory open offer for acquiring up to 26% of the expanded capital from the existing shareholders of Fortis at Rs 170 per share for a consideration of up to Rs 3,300 crore would be completed in due course. Depending on the shares tendered by the shareholders of Fortis, IHH-NTK would have between 31.1% to 57.1% stake on the expanded capital.
Currently, Fortis operates its healthcare delivery services in India, Dubai, Mauritius and Sri Lanka with 43 healthcare facilities (including projects under development), approximately 9,000 potential beds and 378 diagnostic centres. The healthcare verticals of the company primarily comprise hospitals, diagnostics and day care specialty facilities.
We see potential synergies between Fortis and IHH and will look to leverage IHH’s global healthcare expertise to grow Fortis further. We are quite enthusiastic about working with IHH as our association has come at a point in time when healthcare in India is at an inflection point, said, Bhavdeep Singh, chief executive officer, Fortis in a statement.
Ravi Rajagopal, chairman, board of directors, Fortis Healthcare, said in a statement that the reconstituted board will actively provide strategic direction and vision to the company. “The board will be working closely with management to further strengthen governance and internal control frameworks on par with other leading organisations,” he said.