Fortis Healthcare to take Rs 1100 crore loan from Citibank

The board of Fortis Healthcare had approved in July last year a proposal from IHH Healthcare to invest Rs 4,000 crore by way of preferential allotment for a 31.1 per cent stake.

New Delhi: Fortis Healthcare Tuesday said it has inked a pact with Citibank to avail a loan of Rs 1,100 crore in order to take care of its contractual commitments and strategic objectives.

The loan agreement was executed on January 10, with certain CPs (commercial papers) for disbursal being fulfilled on January 14, Fortis Healthcare said in a regulatory filing.

In a separate development, the company said it has completed the acquisition of RHT Health Trust (RHT) assets.

In February last year, Fortis had announced that it has entered into definitive agreements with RHT to acquire an entire portfolio of assets of the Singapore-listed entity for an enterprise value of Rs 4,650 crore.

"The company has today consummated the transaction by the acquisition of relevant sale securities and payment of required consideration," Fortis Healthcare Ltd said in a regulatory filing.

Consequently, International Hospital Ltd, Fortis Health Management Ltd, Escorts Heart and Super Speciality Hospital Ltd, Hospitalia Eastern PVT Ltd and Fortis Hospital Ltd have become wholly-owned subsidiaries of the company, it added.

The transaction was approved by an overwhelming majority of Fortis shareholders with voting in favour of the transaction in excess of 99 per cent, the company said.