Fortis Q2 net loss widens to Rs 142 Crore; IHH transaction to be completed shortly
New Delhi: Fortis Healthcare has recently reported widening of its consolidated net loss to Rs 142 crore for the quarter ended September 2018, mainly impacted by impairment of goodwill and investments.
The company also said all approvals are in place for fund infusion of Rs 4,000 crore from IHH Healthcare Berhad and the transaction will be completed shortly. The company had posted a net loss of Rs 23.61 crore for the corresponding period of the previous fiscal, Fortis Healthcare said in a filing to BSE.
Consolidated income from operations of the company stood at Rs 1,139.90 crore for the quarter under consideration. It was Rs 1,197.17 crore for the same period a year ago. "Net profit for Q2FY19 primarily impacted by impairment of goodwill and investments respectively," Fortis Healthcare said. The CCI approval has been received by Northern TK Ventures Pte Ltd (a subsidiary of IHH). With all approvals in place both Fortis and IHH working to close the transaction shortly, it said.
In its update on transactions, the company also said about "fund infusion of Rs 4,000 crore with the preferential allotment to provide IHH with a 31 per cent stake followed by an open offer by IHH for up to 26 per cent of the expanded equity capital of the company", it added.
Capital raised would primarily be utilised to complete the proposed acquisition of RHT Indian assets which will result in the elimination of clinical establishment fee that Fortis pays to RHT, the healthcare provider said.
Commenting on the results and deal, Fortis Healthcare Chairman Ravi Rajagopal said: "While this quarter has witnessed strong performance versus the trailing quarter, the impending investment by IHH would further help strengthen the business."
All approvals pertaining to the Fortis IHH transaction are now in place and both the organisation are working to complete the transaction expeditiously, he added. The company had net debt of Rs 1,497 crore and a net debt to equity ratio of 0.29 times as on September 30, 2018, Fortis Healthcare said.
Read Also: Fortis Healthcare CEO Bhavdeep Singh quits
The company also said all approvals are in place for fund infusion of Rs 4,000 crore from IHH Healthcare Berhad and the transaction will be completed shortly. The company had posted a net loss of Rs 23.61 crore for the corresponding period of the previous fiscal, Fortis Healthcare said in a filing to BSE.
Consolidated income from operations of the company stood at Rs 1,139.90 crore for the quarter under consideration. It was Rs 1,197.17 crore for the same period a year ago. "Net profit for Q2FY19 primarily impacted by impairment of goodwill and investments respectively," Fortis Healthcare said. The CCI approval has been received by Northern TK Ventures Pte Ltd (a subsidiary of IHH). With all approvals in place both Fortis and IHH working to close the transaction shortly, it said.
In its update on transactions, the company also said about "fund infusion of Rs 4,000 crore with the preferential allotment to provide IHH with a 31 per cent stake followed by an open offer by IHH for up to 26 per cent of the expanded equity capital of the company", it added.
Capital raised would primarily be utilised to complete the proposed acquisition of RHT Indian assets which will result in the elimination of clinical establishment fee that Fortis pays to RHT, the healthcare provider said.
Commenting on the results and deal, Fortis Healthcare Chairman Ravi Rajagopal said: "While this quarter has witnessed strong performance versus the trailing quarter, the impending investment by IHH would further help strengthen the business."
All approvals pertaining to the Fortis IHH transaction are now in place and both the organisation are working to complete the transaction expeditiously, he added. The company had net debt of Rs 1,497 crore and a net debt to equity ratio of 0.29 times as on September 30, 2018, Fortis Healthcare said.
Read Also: Fortis Healthcare CEO Bhavdeep Singh quits
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