Fortis, RHT Health extend discussion time by 30 days
New Delhi: Fortis Health Management and Singapore-listed RHT Health Trust have extended exclusivity period to finalize the proposed acquisition by 30 more days from January 12.
Fortis' board had approved the proposed acquisition of the entire portfolio of RHT Health Trust (RHT) for an enterprise value of around Rs 4,650 crore.
Both the parties as per the agreed term sheet between them had entered into an exclusivity period for 60 days which expired on January 12, 2018.
"It is hereby further informed that the parties to the Term Sheet have on January 12, 2018, mutually agreed to extend the Exclusivity Period by an additional period of 30 days from January 12, 2018.
This is in order to facilitate the continued negotiations and finalisation of the definitive agreements in relation to the proposed transaction," Fortis said in a regulatory filing.
The step is part of a restructuring initiative aimed at consolidating the entire Indian asset portfolio comprising various clinical establishments and two operating hospitals of RHT Health Trust into Fortis.
Fortis has an indirect stake of 29.76 percent in RHT.
For 2017-18, the net cumulative service fees to be paid by Fortis to RHT is estimated to be around Rs 270 crore.
Upon completion of the securities acquisition, the service fees that Fortis was paying will be completely eliminated, as per details shared by the firm earlier.