New Delhi: Fortis Healthcare board on Friday approved Rs 4,000-crore offer from IHH Healthcare for 31.1 per cent stake in it, valuing the cash-strapped firm at Rs 8,880 crore thus ending months of takeover battle.
IHH Healthcare, which is expected to gain majority control of India’s second-largest hospital chain after a mandatory open offer for an additional 26 per cent stake, said in the long term it would rebrand Fortis hospitals into Gleneagles.
The Malaysian healthcare major which offered to infuse the capital at Rs 170 per share pipped rival Manipal-TPG combine’s Rs 2,100-crore offer at Rs 160 per share. “The transaction is expected to be completed within seven business days of receipt of shareholders’ and CCI’s approval, which will be obtained concurrently with shareholders’ approval and can take approximately 60-75 days,” Fortis Healthcare said.
Commenting on the development, Fortis Healthcare chairman Ravi Rajagopal said the IHH proposal offered a more strategically and financially compelling proposition along with simplicity and certainty.
