The open offer would be made at a price of Rs 170 per share, for which up to Rs 3,300 crore would be spent
Malaysian company IHH Healthcare Berhad has taken a controlling stake in Fortis Healthcare through its wholly owned subsidiary Northern TK Venture Pte Ltd.
Fortis has issued 23.53 crore equity shares, or 31.10% stake to the Malaysian firm for around Rs 4,000 crore. Now, Northern TK Venture will have to make the mandatory open offer to acquire further 26% stake in Fortis.
The open offer would be made at a price of Rs 170 per share, for which up to Rs 3,300 crore would be spent. Depending upon the shares tendered through the open offer, IHH Healthcare will hold anywhere between 31.10% and 57.10% in the Indian hospital chain.
On Tuesday, 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.
For the Malaysian Group, Fortis isn't the last stop to expand its footprint in India. "The acquisition of a controlling stake in Fortis represents a transformational investment for IHH and demonstrates our commitment to invest considerable resources to expand and consolidate out footprint in India," its MD Tan See Leng said.
In a statement, Bhavdeep Singh, chief executive officer, Fortis, said, "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."
Last week, Singh had resigned from the company. However, he would continue to be part of the organisation till the time his replacement is appointed. It is believed that IHH Healthcare would make an appointment in his place.
The round of discussions for stake sale in Fortis has been underway for two years now. During this period there have been multiple drawbacks and failures in the sale process for the Gurgaon-based healthcare company.
STOCK TREATMENT
- The open offer would be made at a price of Rs 170 per share, for which up to Rs 3,300 crore would be spent
- IHH Healthcare will hold anywhere between 31.10% and 57.10% in the Indian hospital chain after the open offer
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On Tuesday, 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.
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