Fortis, RHT extend last date for completing acquisition

Fortis Healthcare Ltd and RHT Health Trust have agreed to extend the last date for the acquisition of entire portfolio of assets of the Singapore listed entity.

"FHL and RHT have agreed to amend the Long Stop Date in the definitive agreement for the fulfilment of conditions precedent from September 30, 2018 to December 31, 2018 or such other date as may be mutually agreed between the parties in writing," Fortis said in a filing to BSE today.

FHL is in process of raising funds via primary infusion which will enable it to acquire the RHT assets. The fund raise process is under way and awaiting regulatory approvals, it added.

Another principal amendment agreed upon by both parties is that the consideration Fortis pays will be computed on the Rs:SGD closing offer rate one business day prior to completion date, Fortis Healthcare said.

However, if the closing offer rate is lower than the closing offer rate on September 30, 2018 then the reference rate for computing the consideration shall be that of September 30, 2018, it added.

Besides, they have agreed that Fortis would compensate RHT for all the reasonable costs that may be incurred by RHT for obtaining services from legal advisers, independent financial adviser, tax advisers, valuers and reporting accountants solely resulting from the extension of the Long Stop Date, Fortis Healthcare said.

"Fortis believes that the proposed transaction will potentially enhance value for all its stakeholders," it added.

With the unwinding of the current structure, it would also make it easier for investors and other stakeholders to better understand the company's business and financial performance, it added.

Upon completion of the securities acquisition, the service fees that Fortis was paying will be completely eliminated thereby improving significantly its operating profitability such as EBITDA and cash flows, Fortis Healthcare said.

On February 13, Fortis Healthcare had said that it has entered into definitive agreements RHT to acquire entire portfolio of assets of the Singapore-listed entity for an enterprise value of Rs 4,650 crore.