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Manipal, Fortis to merge hospital biz; SRL Diagnostics to be part of deal

The value of the combined hospital business is estimated at around Rs 150 billion after the transaction

Aneesh Phadnis  |  Mumbai 

Fortis
Together the group (Fortis-Manipal Hospitals combine) will have 45 hospitals in India and overseas, and 11,000 installed beds

Manipal Hospitals, backed by private equity firm TPG, and have announced a merger of their hospital businesses, creating the largest provider of healthcare services in India by revenue.

In a late evening notification to the stock exchange, said its board had approved the merger of its hospital business with The resultant entity, Manipal Hospitals, will be a publicly traded company, listed on the National Stock Exchange (NSE) and the BSE.

Together the group will have 45 hospitals in India and overseas, and 11,000 installed beds. The existing promoters of and TPG will be the controlling shareholders of the hospital business with a 58.6 per cent stake.

As part of the transaction, Ranjan Pai, chairman of Manipal Education and Medical Group, and TPG will invest Rs 39 billion in The funds will be used to acquire a 50.9 per cent stake in Fortis’ diagnostic business,

The value of the combined hospital business is estimated at around Rs 150 billion after the transaction.

For every 100 shares of Fortis Healthcare, a shareholder will receive 10.83 shares in Manipal Hospitals (the combined hospitals business). The transaction is subject to approvals.

“The demerger of Fortis’ hospital business into Manipal Hospitals will unlock significant value for all stakeholders and will accelerate and expand access to high quality healthcare services in India,” Fortis promoters and said in a joint statement.

“The make a compelling strategic fit in terms of complementary geographies, clinical strengths as well as a shared commitment to provide outstanding patient care. As the largest hospital operator in India, this will be a platform benefiting all, from the communities we serve, to our capable employees and investors,” Pai said.

First Published: Wed, March 28 2018. 01:11 IST
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