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| Fortis Healthcare India completes acquisition of Int'l arm |
| BS Reporter / Mumbai Jan 12, 2012, 10:17 IST |
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Fortis Heathcare India has announced the consummation of the acquisition of Fortis Healthcare International by its wholly owned subsidiary, Fortis Asia Healthcare Pte Ltd (FAHPL) for an agreed valuation of $665 million.
Fortis India had agreed to acquire 100% of Fortis Int'l from RHC Financial Services, Mauritius for the said amount, according to a filing it had submitted to the Bombay Stock Exchange on November 1, 2011.
In a more recent filing to BSE, the purchase consideration for equity shares of Fortis Int'l amounting to $262 million, after taking into account the firm's outstanding liabilities, is being funded through infusion of $262 million against redeemable preference shares of FAHPL issued to the promoters of the company.
The shares wold carry an annualised yield of 5% and are redeemable after 18 months, with FAHPL having an option to redeem the redeemable preference shares before the expiry period of 18 months.
The agreed value of $665 million of Fortis Healcare International includes assets pertaining to Dental Corporation Holdings, Australia, Quality Group, Hong Kong, Hoan My Medical Corporation, Vietnam, Fortis Specialty Hospital, Singapore, SRL Laboratories, Dubai and a minority stake in Lanka Hospital Corporation, Sril Lanka.
In addition, the filing said, "Fortis Healthcare International continues to explore and engage in inevstment opportunities in healthcare across juristictions, none of which are currently material in nature."
Consequently, the Management Structure of the combined entity has been aligned to manage the global business of the company more efficiently, as per a separate filing by the company to the BSE.
Malvinder Mohan Singh and Balinder Singh Dhillon have been appointed as the executive directors for a period of 5 years. Shivinder Mohan Singh, previously, managing director, has been re-designated as executive vice chairman.
The board will seek shareholders' approval by way of postal ballot for changing the name of the company to 'Fortis Healthcare Ltd', appointment of Malvinder Mohan Singh as executive chairman and appointment of Balinder Singh Dhillon as executive director of the Company
Shares of Fortis Healthcare India were being quoted at Rs 99.40 at the BSE in the morning trade, up 2.05% from previous day's close.
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