Fortis Healthcare to demerge its hospital division into Manipal Hospitals

Hospital chain Fortis Healthcare Ltd said on Tuesday that it has decided to demerge hospital business into Manipal hospitals, promoted by Dr Ranjan Pai and backed by TPG.

"The move will unlock significant value for all stakeholders and will further accelerate and expand access to high quality healthcare services in India," a press statement released by promoters Malvinder Singh and Shivinder Singh said.

Earlier, Fortis had said it received an unsolicited non-binding offer from Manipal Health Enterprises for transaction with the company.

The board of directors of the company has received an unsolicited non-binding indication of interest from Manipal Health Enterprises Pvt Ltd for possible transaction with the company, Fortis Healthcare said in a filing to the BSE.

"The said proposal is still under evaluation by the management and no firm decision in this regard has been taken by the board," it added.

The clarification had led to slide in shares of the company. The shares fell by nearly 4 per cent.

The stock declined 3.55 per cent to end at Rs 142.45 on BSE, while on NSE, the stock dipped 3.65 per cent to close at Rs 142.25.

Here's the full statement from Malvinder Singh & Shivinder Singh:

The demerger of Fortis’ Hospital business into Manipal Hospitals, promoted by Dr. Ranjan Pai and backed by TPG, will unlock significant value for all stakeholders and will further accelerate and expand access to high quality healthcare services in India. We are happy and confident that the combination will be value accretive for all stakeholders.

Keeping the interest of the company and stakeholders foremost, we continue to support the Management and the Board to successfully transition to the new joint entity. We want to thank everyone involved in the deal for reposing faith despite challenging circumstances.

For over a decade and a half, we have committed to expanding and building India’s leading healthcare organisation which delivers best-in-class infrastructure and world-class care to its patients. From a humble beginning with one hospital in 2001, Fortis has grown to become a national healthcare provider in a rather short span of time, owing to the relentless dedication of the Fortis family.

We are grateful to each and every one of our colleagues in Fortis and all our stakeholders, to have us as a part of this truly amazing organization.