Malaysia's IHH likely to get control of Fortis Healthcare this week

The Fortis stock has seen an erosion of 5.4% since the deal was announced in mid-July

Malaysian healthcare major IHH Healthcare Berhad is likely to take formal control of Fortis Healthcare Ltd (FHL) this week, sources claim.

The country’s fair trade regulator, Competition Commission of India, gave the go-ahead to the deal in October-end, paving the way for IHH to acquire a 31 per cent stake in India’s second-largest hospital and diagnostic chain through a fund infusion of Rs 40 billion.

Sources indicate the fund infusion through preferential allotment of shares (to its wholly owned subsidiary Northern TK Venture) is expected anytime now. This will give IHH roughly 31 per cent of FHL’s total voting equity