Fortis accepts $584 million stake deal from Malaysia's IHH Healthcare

Fortis accepts $584 million stake deal from Malaysia’s IHH Healthcare

Fortis accepts $584 million stake deal from Malaysia's IHH HealthcareIHH will invest ₹40 billion at ₹170 per share

Fortis Healthcare Ltd said on Friday it accepted an investment offer from Malaysia’s IHH Healthcare Bhd, capping a months-long bidding war for control of the firm that drew interest from domestic and international suitors.

The cash-strapped Fortis said IHH will invest ₹40 billion at ₹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.

Northern TK Venture Pte Ltd, Singapore, a unit of IHH, will be issued 235.3 million new Fortis shares through a preferential allotment, giving it roughly 31 per cent of the company’s total voting equity share capital.

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.

Recent developments in the healthcare industry made Fortis an attractive takeover target. Manipal Health Enterprises Ltd, along with private equity firm TPG Capital, and KKR & Co-backed Radiant Life Care Pvt Ltd had also bid for stakes in Fortis.

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