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The race to buy controlling stake in India’s leading healthcare firm Fortis Healthcare and its diagnostic subsidiary SRL Diagnostics has boiled down to two players. According to a report published in Mint, PE funds TPG Capital and General Atlantic LLC have joined hands for the bid, competing with Malaysia’s IHH Healthcare Berhad, one of the largest healthcare groups in Asia and operator of Parkway Pantai Hospitals.
The report said that the promoters are looking at a price of Rs 250 per share for Fortis and another Rs 2,000 crore for SRL to cede management control of the firm. As per shareholding pattern as on March 31, 2017 available on BSE, promoters’ holding in Fortis at the end of March stood at around 52.30 percent.
As per the deal, the new owner will buy 26 percent from the promoters, followed by a mandatory open offer for public shareholders to comply with the Indian regulation. The new owner will also buy controlling stake in SRL Diagnostics and Fortis Malar, a listed subsidiary of Fortis, the newspaper said.
The proceeds of stake sale will go toward paying the outstanding obligations to Daiichi Sankyo, which has won an arbitral award against the Singh Brothers and servicing the debt of Fortis.
Daiichi has moved to Delhi High Court to protect its interest and the court directed the Singh brothers in March to furnish details of their unencumbered assets. Any final stake sale will require the court nod to go through.
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