Fortis Hospitals to demerge with Manipal Hospitals making it largest chain in India

New Delhi, March 28: Fortis healthcare Hospitals to be very soon demerged with Manipal Hospitals apart from which it will sell a majority stake in its SRL Diagnostics unit to the same group. This will be the largest hospital in India.

According to an official press release “The Board of Directors of Fortis Healthcare Limited (“FHL”) has approved the demerger of its hospitals business (“Fortis Hospitals”) into Manipal Hospital Enterprises Private Limited (“Manipal Hospitals”) today. The Board has also approved the sale of its 20% stake in SRL Limited (“SRL”) to Manipal Hospitals. The resultant entity Manipal Hospitals will be a publicly traded company listed on NSE and BSE. The remaining FHL will be an investment holding company with 36.6% stake in SRL.”

The combined company will be 38 percent owned by Manipal Chief Executive Ranjan Pai while U.S. buyout firm TPG will hold a 20.7 percent stake. It will be the country’s biggest healthcare provider by revenue, Fortis said, posing a formidable rival to Apollo Hospitals Enterprise Ltd.

 

Under the deal, Fortis shareholders would get 10.83 shares in the combined company, Manipal Hospitals, for every 100 Fortis shares held, Fortis said in a statement. The total value of the transaction was not disclosed.

Fortis has 34 hospitals across India and some other countries including Sri Lanka, while Manipal has 14 hospitals in mostly southern Indian states and Malaysia. Apollo has 64 hospitals, according to its website.

The combined company is expected to seek a listing on the National Stock Exchange and the Bombay Stock Exchange.