IHH launches open offers for Fortis shareholders

IHH has launched an open offer for both Fortis entities after the board of Fortis Healthcare approved IHH's proposal to acquire the company.

Jul 13, 2018 09:07 IST India Infoline News Service

Fortis Healthcare
As expected, IHH has launched two open offers -- one for Fortis Healthcare shareholders and the other one for Fortis Malar Hospitals shareholders. IHH has launched these open offers together with Northern TK Venture Pte and Parkway Pantai Limited.

In Fortis Healthcare, IHH has launched an open offer to acquire 19.7cr fully paid-up shares representing 26% of the diluted stake in the company. The said open offer is made at a price of Rs170/share and the total consideration payable by acquirer will be Rs3,349cr.

IHH has also launched a separate open offer for Fortis Malar shareholders. The open offer is for 48.9lakh shares comprising 26% of the voting share capital. This open offer is made at a price of Rs58/share and total consideration to be paid by IHH would be Rs28cr.

Earlier in the morning, the board of Fortis healthcare approved the binding proposal of IHH to invest Rs4,000cr in the troubled hospital chain by way of preferential allotment of shares. This has led Fortis to issue 23.5cr fresh shares (31.1% of the total share capital). This preferential allotment has triggered the open offer for the shareholders in both the entities.

Post the successful open offer, IHH’s stake in the Fortis Healthcare would go up to 57.1%.

While IHH is acquiring Fortis Healthcare, approval by shareholders and regulators is important, which is likely to take 60-75 more days as per the company.

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