Fortis Malar to sell hospital infrastructure to group firm

Chennai-based Fortis Malar Hospitals Ltd, part of Fortis Healthcare, is planning to sell its hospital infrastructure to one of the group’s subsidiaries. The valuation would be done by a third party and proceedings will be used for proposed expansion in the state, according to company’s spokesperson.

In an announcement to the Bombay Stock Exchange (BSE) today, the company said the Board of Directors of the company at its meeting on June 9, 2011, approved to transfer ô sell the hospital infrastructure undertaking of the company on a going concern basis by way of a slump sale to any of its subsidiary, group gompany or associates.

According to Fortis Malar’s spokesperson, the hospital wants to grow and want to expand its presence in other parts of the state. To support the expansion, it was decided to sell the building, radiology equipment and others to a group company.

The valuation will be done by a third party who has been appointed already, said the spokesperson. He noted, Fortis group operates on asset-light model, by which the group will manage the hospital and it will not own the land or building of the upcoming eight projects across the country, seven are in the same model. “Company does not want to be asset heavy,” he said.

The same formula will be applied for Fortis Malar. Presently, the hospital has 180 beds in Chennai. It may be noted Fortis Healthcare Ltd (FHL) acquired Malar Hospitals, one of the landmark hospital in Chennai in early 2008.