Fortis eyes Trehan's Medicity

Fortis Healthcare Limited is close to picking up a majority stake in Naresh Trehan's upcoming Medicity project in Gurgaon, with the contours of the agreement expected to be finalised within a month.

Once a deal is struck, the $250-million Medicity project will form a part of Fortis' mega hospital complex plan for Gurgaon and also avoid direct competition with Medicity.

When contacted, both sides acknowledged that talks were on. The first phase of the Medicity project is expected to be complete by mid-2007. Trehan, the man behind the project, said he was in regular talks with Fortis over the issue.

"We are working together. We are talking to each other. I am open to any kind of collaboration and there are no issues involved," he said.

Fortis Managing Director Shivinder Mohan Singh accepted that he was very much for his company's takeover of Medicity. "I am very hopeful about a deal and we are in regular touch," he said.

Asked for details of the proposed deal, Singh said Fortis was looking at six to seven kinds of structures for the best option. "What is certain is the presence of Trehan. We want to continue our partnership and the idea would be to integrate our strengths," he said.

Fortis recently acquired a majority share in Escorts Heart Institute and Research Centre. Trehan continues to be the chief surgeon and a minority shareholder in the hospital.

A similar agreement, if it materialises, will bring together the resources of the country's leading technocrat in medical sciences and a fast growing hospital chain promoted by the Singh family of Ranbaxy.

Fortis already has a huge project worth over Rs 1,000 crore lined up in Gurgaon. The "Fortis Institute of Medical and Biosciences" is meant to have two super-specialty hospitals, with focus on oncology. In case it strikes a deal with Trehan, Fortis will be partnering yet another major hospital venture.