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Last Updated : Oct 15, 2013 02:32 PM IST | Source: Moneycontrol.com

Fortis Health up 7% on Quality Healthcare sale to Bupa

"The divestment enables Fortis to further strengthen balance sheet and substantially improve net debt equity ratio, creating further room for growth," Malvinder Singh, executive chairman, and Shivinder Singh, executive vice chairman of Fortis Healthcare said.

 
 
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Shares of Fortis Healthcare rallied 6.6 percent in intraday trade on Tuesday after the company decided to divest its 100 percent shareholding in Hong Kong-based Altai Investments to British Medical services group Bupa for USD 355 million.


Altai Investments is the holding company for Quality Healthcare. The deal, which is a part of company's efforts to reduce debt, is expected to be completed in October 2013, the company said in its filing.


"The divestment enables Fortis to further strengthen balance sheet and substantially improve net debt equity ratio, creating further room for growth," Malvinder Singh, executive chairman, and Shivinder Singh, executive vice chairman of Fortis Healthcare said.


Established in 1868, Quality Healthcare is the largest provider of healthcare services to corporations in Hong Kong, with a network of 50 medical centres, more than 500 affiliated clinics and more than 20 dental and physiotherapy centres.


Quality Healthcare was bought by a vehicle owned by Fortis founders Malvinder Mohan Singh and his brother Shivinder in October 2010 for about USD 190 million. In 2011, Fortis acquired all the international operations of the family business.


Following the Quality Healthcare divestment, the India revenue will account for nearly 95 percent of the company’s total revenue. "With the addition of new capacity and performance improvements, the company expects its India business to exhibit a robust operating performance going forward.


At 11:40 hours IST, the stock was trading at Rs 107.05, up 2.59 percent amid hefty volumes on the Bombay Stock Exchange.

(With inputs from Reuters)

First Published on Oct 15, 2013 11:53 am
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