Fortis Healthcare to buy 51% stake in Religare Health Trust unit for Rs 970 cr

Religare Health Trust is a business trust listed on the SGX of which Fortis is a sponsor with a 28 per cent equity stake

Fortis Healthcare today said it will acquire 51 per cent stake in Fortis Hospotel, a subsidiary of Religare Health Trust (RHT), for Rs 970 crore.

RHT is a business trust listed on the SGX of which Fortis is a sponsor with a 28 per cent equity stake.

"The net investment consideration for the transaction is estimated to be an amount of approximately Rs 970 crore. The economic impact to Fortis would be lower as Fortis owns 28 per cent equity stake in RHT," Fortis Healthcare said in a statement.

Commenting on the development, Fortis Healthcare Executive Chairman Malvinder Singh said: "RHT will continue to be a strategic vehicle for our asset light growth in India and will play a larger role in our India centric expansion plans going forward."

With a potential to double the existing bed capacity from the current capacity of nearly 4,500 beds, "RHT will undertake a majority of the investments for all our brownfield and bolt on expansion plans in all the clinical establishments in its portfolio," he added.

The investment payable will be funded largely through internal accruals. "As a result of the majority acquisition of FHTL, it will become a subsidiary of Fortis and hence be consolidated with Fortis," Fortis Healthcare said.

The transaction is on an arm's length basis with an independent valuation done by valuers of international repute both by Fortis and RHT respectively, it added.

Shares of Fortis Healthcare today closed at Rs 172.45 per scrip on the BSE, up 2.62 per cen from previous close.