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Fortis accepts $584 million stake deal from Malaysia's IHH Healthcare

Reuters  |  MUMBAI 

(Reuters) - Healthcare Ltd said on Friday it accepted an investment offer from Malaysia's Healthcare Bhd, capping a months-long bidding war for control of the firm that drew interest from domestic and international suitors.

Cash-strapped said will invest 40 billion rupees ($584.11 million) at 170 rupees per share in the company that operates about 30 private in India, where the race to cash in on a private is heating up. The offer is at a 19.5 percent premium to Fortis' closing price on Thursday.

Northern TK Venture Pte Ltd, Singapore, a unit of IHH, will be issued 235.3 million new shares through a preferential allotment, giving it roughly 31 percent of the Indian company's total voting equity share capital.

said in a separate statement it expects the deal to be completed in the fourth quarter and does not expect it to have any material effect on profits for the fiscal year ending Dec 31.

Recent developments in the made Fortis an attractive takeover target. Manipal Health Enterprises Ltd, along with firm TPG Capital, and KKR & Co-backed had also bid for stakes in Fortis.

Private in is rising, and the government is working on expanding insurance to hundreds of millions of people in a country that lacks adequate heath facilities. The is expected to benefit private such as those run by Manipal and Fortis, analysts say.

($1 = 68.4800 Indian rupees)

(Reporting by Tanvi Mehta and Sayantani Ghosh; Additional reporting by Abinaya Vijayaraghavan and Anshuman Daga; Editing by Muralikumar Anantharaman)

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

First Published: Fri, July 13 2018. 08:07 IST