Fortis EGM on 13 August over stake sale to IHH

New Delhi: Fortis Healthcare said an extraordinary general meeting (EGM) of the company will be held on 13 August to seek shareholders’ nod for its acquisition by Malaysia’s IHH Healthcare.

The Fortis Healthcare board had last week approved a Rs4,000-crore offer from IHH Healthcare for a 31.1% stake in it, valuing the cash-strapped firm at Rs8,880 crore. The transaction, to be carried out via IHH Healthcare’s arm Northern TK Venture Pte Ltd, was to be followed up by an open offer for an additional 26% stake in Fortis.

Read also: IHH Healthcare: Meet the Highest Bidder of Fortis Healthcare

In a notice for the EGM, Fortis Healthcare said the consent of shareholders is being sought for issuance of 23,52,94,117 equity shares on preferential basis at a price of Rs170 per share aggregating up to Rs4,000 crore to Northern TK Venture Pte Ltd.

The company is also seeking a nod from shareholders to reclassify Malvinder Mohan Singh, Malvinder Mohan Singh- Trust, Shivinder Mohan Singh, Harpal Singh, Abhishek Singh, Fortis Healthcare Holdings Pvt Ltd, Malav Holdings Pvt Ltd and RHC Holding Pvt Ltd from the ‘promoter and promoter group’ shareholder category to ‘public’ shareholder category.

The company will also ask shareholders to approve the classification of Northern TK Venture Pte Ltd as ‘promoter’ subsequent to the completion of the preferential allotment of equity shares, Fortis Healthcare said.

IHH Healthcare is expected to shell out a total of Rs7,300 crore to acquire a 57.1% stake, provided its open offer for 26% stake is fully subscribed. The Malaysian healthcare chain, which will gain majority control of India’s second-largest hospital chain, has already stated that in the long term it will rebrand Fortis hospitals into its own Gleneagles chain.

Read also: Fortis to be renamed as Gleneagles, says IHH Managing Director Tan See Leng