IHH acquires controlling 31.1% stake in Fortis for Rs 4,000 crore

NEW DELHI: Fortis Healthcare on Tuesday said it had issued 23.53 crore equity shares through preferential allotment to IHH Healthcare Berhad for around Rs 4,000 crore, helping the Malaysian firm take 31.1% stake in the company.
The allotment has been done at Rs 170 per share.
IHH has now become the controlling shareholder in the company, Fortis Healthcare said in a filing to BSE. The board of Fortis also approved the appointment of four IHH nominees on the company’s board.
The Board of Directors of the company on Tuesday approved the allotment of 23,52,94,117 equity shares through preferential issue to Northern TK Venture Pte Ltd (wholly-owned indirect subsidiary of IHH Healthcare Berhad) (IHH-NTK) at Rs 170 per share of Rs 10 face value, it added.
“Following this, the mandatory open offer for acquiring up to 26% of the expanded capital from 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,” it said. “Depending on the shares tendered by shareholders of Fortis, IHH-NTK would have between 31.1% and 57.1% stake on the expanded capital.”
The board also approved the appointment of four IHH-NTK’s nominees — Tan See Leng, Low Soon Teck, Chan Boon Kheng and Bhagat Chintamani Aniruddha — as additional directors of Fortis with immediate effect, it added.
Tan See Leng is the managing director and chief executive officer of IHH Healthcare Berhad.
“The reconstituted Board will have a total of seven members with three current directors and four additional directors nominated by IHH,” according to Fortis Healthcare.
Commenting on the development, IHH MD and CEO Tan See Leng said: “The acquisition of a controlling stake in Fortis Healthcare, one of the leading healthcare service providers in India, represents a transformational investment for IHH and demonstrates our commitment to invest considerable resources to expand and consolidate our footprint in India.”
”With a clear and holistic strategy in place, we will work closely with Fortis’ Board and management to pave the way for Fortis Healthcare to realise its full potential in the long run,” he added.
“I am pleased to announce the completion of the investment by IHH in Fortis. With this, I welcome the new IHH nominated members on the Board,” Fortis Healthcare Board of Directors Chairman Ravi Rajagopal said.
The reconstituted board will actively provide strategic direction and vision to the company and will ensure that the company’s focus on clinical excellence, clinical outcomes, patient care and business results remains paramount, he added.
“The Board will be working closely with management to further strengthen governance and internal control frameworks on par with other leading organisations,” Rajagopal said.

Shares of Fortis Healthcare Ltd closed at Rs 141.80 on the BSE, up 1.95% from its previous close.

Source: Press Trust of India

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