Fortis to seek shareholders nod for stake sale to Malaysia's IHH on Aug 13

Fortis Healthcare on Thursday said extraordinary general meeting (EGM) of the company will be held on August 13 to seek shareholders nod for its acquisition by Malaysia's IHH Healthcare.

Last week, 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.

In a notice for the EGM, Fortis Healthcare 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 is also seeking 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.

The company will also ask shareholders to approve classification of Northern TK Venture Pte Ltd as 'Promoter' subsequent to the completion of the preferential allotment of equity shares, Fortis Healthcare said. 

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 Malaysian healthcare chain, which will gain majority control of India's second-largest hospital chain has already stated that in the long term it would rebrand Fortis hospitals into its own Gleneagles chain.

Shares of Fortis Healthcare Ltd on Thursday closed 2.96 per cent lower at Rs 137.50 per scrip on the BSE.