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Board of Fortis Healthcare decides to undertake rebranding and change in company name

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At meeting held on 14 August 2020

The Board of Directors of Fortis Healthcare (Company), in their meeting held on 14 August 2020, has, in light of various considerations including the expiry of the current brand license agreements in April/May 2021, and to reinforce the complete disassociation of the Company from its erstwhile promoters, unanimously given an in-principle approval to discontinue the use of 'Fortis', 'La Femme' and 'SRL' as part of the name, brand and logo of the Company and its subsidiaries. Basis the in- principle approval, the Company has now approached Hon'ble Supreme Court for its consent in the matter.

Further, as part of its commercial strategy, the Company intends to, going forward, obtain a license to use the name, brand and logo 'Parkway' (on such terms as may be mutually agreed on an arm's length basis) as part of the name, brand and logo of the Company and its subsidiaries (excluding SRL and its subsidiaries and joint ventures) in relation to the hospital business. This rebranding decision has been taken by the Board of Directors based on brand research conducted by the Company.

Parkway' is a well renowned and internationally acclaimed brand in the field of healthcare, belonging to IHH Healthcare Berhad, the ultimate parent of Northern TK Venture Pte Ltd., the promoter of the Company which holds approx. 31% of its share capital. The IHH group operates more than 15,000 licensed beds across 78 hospitals in 10 countries worldwide and is Asia's largest integrated private healthcare provider.

IHH nominee directors on the board of the Company abstained from voting on the specific agenda item dealing with the Company obtaining a license to use the 'Parkway' name, brand and logo.

Also, the Board of Directors of the Company and SRL (material subsidiary of the Company) have decided to proceed with a proposed change in its name and branding. Accordingly, SRL would no longer be using 'SRL' name, brand and logo and would register and develop a new neutral name, brand and logo unrelated to the IHH group and the 'Fortis' brand, for use in relation to the diagnostics business.

The above proposed changes are subject to the directions of the Hon'ble Supreme Court of India, finalisation of mutually agreed terms for license of the 'Parkway' brand, the receipt of all requisite corporate and other approvals, as may be required. The Company has today filed an appropriate application before Hon'ble Supreme Court of India in this regard.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Fri, August 14 2020. 17:41 IST