Moneycontrol
Jun 20, 2017 10:12 AM IST |

IHH Healthcare set to buy controlling stake in Fortis, SRL Diagnostics

The transaction, set to take place in a few weeks, will make IHH Healthcare the second-largest hospital operator in India and help the Singh brothers trim Rs 4,064 crore debt in RHC Holding Private Limited, their holding company.

IHH Healthcare set to buy controlling stake in Fortis, SRL Diagnostics

Moneycontrol News

Asia’s largest private hospital operator IHH Healthcare Berhad will be aiming for a controlling stake from Malvinder and Shivinder Mohan Singh in Fortis Healthcare Limited, Fortis Malar Hospitals Limited and SRL Diagnostics.

Livemint reports that the deal will value the two companies at close to USD 2.9 billion, two persons who are directly aware of the development spoke told the paper.

The transaction, set to take place in a few weeks, will make IHH Healthcare the second-largest hospital operator in India and help the Singh brothers trim Rs 4,064 crore debt in RHC Holding Private Limited, their holding company.

IHH will pay close to Rs 3,600 crore for a 26 percent stake in Fortis. The buyback is expected to bring up annual savings for Rs 400 crore in service fees.

The deal may face opposition from Daiichi Sankyo, as the Japanese drug maker said that the Singh brothers were looking to exit Fortis Healthcare, which would hamper recovery of damages of Rs 2,562 crore awarded by a Singapore tribunal to the drug maker.

In April, Daiichi moved Delhi High Court to block a sale in Religare Health Insurance Company Limited by the Singh brothers to investors affiliated with the equity firm True North, which caused the High Court to furnish details of all their unencumbered assets for future compensation.

A spokesperson for IHH declined to comment on specific transactions but told the paper it is “always looking at various value-accretive opportunities”. An RHC Holding spokesperson said: “We cannot comment on speculation”, according to the report.
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