Delay in approval process compels Board to withdraw scheme
Fortis Malar Hospitals announced that the composite scheme of arrangement and amalgamation between the company, Fortis Healthcare and SRL is currently pending for approval with the National Company Law Tribunal ('NCLT'), Chandigarh Bench. Further, the entire process was expected to take 6-8 months, however, due to reasons beyond the Company's control, the process has taken over 19 months and is still not complete.Due to the inordinate delay in the approval of the composite scheme of demerger, continuing uncertainty of receiving the requisite approvals and less than optimum performance of diagnostics business during this period of delay, it may not be suitable for FMHL shareholders to continue with this scheme as the valuation ascribed earlier to diagnostics business may not be appropriate now. Also, FMHL is a strong independent listed company and can continue to operate through a single hospital business model.
The Board of Fortis Malar Hospitals has on 13 June 2018 approved the withdrawal of the Scheme, subject to the approval of the NCLT.
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