In a bid to tide over a cash crunch at the group level, Malvinder Singh and Shivinder Singh are looking to divest management control in Fortis Healthcare, Religare Health Insurance, Religare Securities and eventually in Religare Enterprises, The Economic Times reported on Saturday.
The divestment of management control, to raise about Rs 5,500 crore, is likely to take place in multiple transactions. However, the brothers will retain significant minority stakes in most of these businesses, people close to the development told the newspaper.
The group is expected to sign binding agreements separately for three transactions — Fortis Healthcare, Religare Health Insurance and Religare Securities — in the next two months. The Religare Enterprises divestment is likely to take place around March-end.
The brothers hold a 63 percent stake in Fortis, of which around 80 percent is pledged with lenders. Similarly, nearly 86 percent of their 50.93 percent stake in Religare Enterprises is pledged.
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