Fortis Buys Out PE Investors in Diagnostics Arm

9 Aug 2024 , 08:32 AM

After years of discussions, IHH Healthcare-backed Fortis Healthcare is expected to purchase private equity investors’ stakes in its own diagnostics business Agilus Diagnostics (previously SRL), according to news reports.

Jacob Ballas and International Finance Corporation (IFC), who together with Resurgence PE own approximately 34% of the diagnostics company, are selling their investment and exercising a put option.

According to news reports, Agilus will be valued at approximately ₹5,000 crore after the transaction.

Fortis Healthcare announced in a late afternoon stock exchange filing that Jacob Ballas intends to exercise its put option.

“The company has received a letter in respect of the exercise of put option right by NYLIM Jacob Ballas India Fund III, LLC (one of the PE investors) for 1.24 crore (12.4 million) equity shares equivalent to 15.86% equity stake held by them in Agilus for Rs 905 crore,” the company’s statement stated.

However, reports say the other investors will exercise their individual put options by early next week. This will result in Fortis Healthcare increasing its share in the diagnostics company from approximately 57% to approximately 91%. The remaining shares of Agilus are owned by individual investors.

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