Fortis shareholders clear stake sale to IHH Healthcare with 99% majority

Fortis Healthcare on Tuesday said its shareholders have given nod to the acquisition of the domestic healthcare chain by Malaysia's IHH Healthcare.

The shareholders of Fortis Healthcare have by an overwhelming majority of 99.69 per cent voted in favour of the issuance of equity shares on a preferential allotment basis.

They have also approved by 99.99 per cent votes to reclassify members of promoter/promoter group to public shareholder category and classification of Northern TK Venture Pvt Ltd as a promoter.

Earlier, in a notice for the EGM in July, Fortis Healthcare had said that the consent of shareholders is being sought for issuance of 23,52,94,117 equity shares on preferential basis at a price of Rs 170 per share aggregating up to Rs 40 billion to Northern TK Venture Pte Ltd.

The company had also sought nod from shareholders to reclassify Malvinder Mohan Singh; Malvinder Mohan Singh - Trust; Shivinder Mohan Singh; Harpal Singh, Abhishek Singh; Fortis Healthcare Holdings Pvt Ltd; Malav Holdings Pvt Ltd and RHC Holding Pvt Ltd from the 'Promoter and Promoter Group' shareholder category to 'Public' shareholder category.

It had asked shareholders to approve classification of Northern TK Venture Pte Ltd as 'Promoter' subsequent to the completion of the preferential allotment of equity shares.

On July 13, the Fortis Healthcare board had approved a Rs 40 billion offer from IHH Healthcare for 31.1 per cent stake in it, valuing the cash-strapped firm at Rs 88.8 billion. 

The transaction, to be carried out via IHH Healthcare's arm Northern TK Venture Pte Ltd, was to be followed up by an open offer for an additional 26 per cent stake in Fortis.

IHH Healthcare is expected to shell out a total of Rs 73 billion to acquire 57.1 per cent stake, provided its open offer for 26 per cent stake is fully subscribed.

The Fortis stock closed 0.86 per cent up at Rs 146.05 on BSE.