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Fortis, RHT Health extend discussion time by 30 days

Press Trust of India  |  New Delhi 

Health Management and Singapore-listed RHT Health have extended exclusivity period to finalise the proposed by 30 more days from January 12.

Fortis' board had approved the proposed of entire portfolio of RHT Health (RHT) for an enterprise value of around Rs 4,650 crore.

Both the parties as per the agreed term sheet between them had entered into an exclusivity period for 60 days which expired on January 12, 2018.

"It is hereby further informed that, the parties to the Term Sheet have on January 12, 2018, mutually agreed to extend the Exclusivity Period by an additional period of 30 days from January 12, 2018.

This is in order to facilitate the continued negotiations and finalisation of the definitive agreements in relation to the proposed transaction," said in a regulatory filing.

The step is part of a restructuring initiative aimed at consolidating the entire Indian asset portfolio comprising various clinical establishments and two operating of RHT Health into

Fortis has an indirect stake of 29.76 per cent in RHT.

For 2017-18, the net cumulative service fees to be paid by Fortis to RHT is estimated to be around Rs 270 crore.

Upon completion of the securities acquisition, the service fees that Fortis was paying will be completely eliminated, as per details shared by the firm earlier.

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

First Published: Sat, January 13 2018. 20:05 IST