Fortis-RHT deal: Early for investors to rejoice

Analysts look at delay in proposed diagnostic demerger move

Fortis Healthcare’s proposal to buy all the assets of its Singapore-listed RHT Health Trust (RHT) for an enterprise value of Rs 4,650 crore, including a debt of Rs 1,152 crore, was taken well by the Street. Fortis share price gained over 11 per cent in Wednesday’s trade before closing at Rs 140.45, a rise of 7.7 per cent. While the restructuring move is aimed at enhancing shareholder value, it may be a bit early to celebrate.

Currently, Fortis has an indirect interest of 29.76 per cent in RHT. The proposed buyout and restructuring will bring the entire Indian assets under one