The Competition Commission of India, which prevents activities that have an appreciable adverse effect on competition in India, has given its approval to IHH Healthcare’s acquisition of a controlling stake in Fortis Healthcare, the second largest hospital chain in the country. IHH healthcare is the world’s second largest healthcare group, which is operating in 9 countries with about 10.000 beds across 49 hospitals, it offers the full spectrum of integrated healthcare services from clinics to hospitals to quaternary care and a wide range of ancillary services including medical education. For IHH Healthcare, India is its third home market with a network of 7 Hospitals and 3 medical centres.
In the proposed deal, IHH Healthcare will pick up 31% stake at Rs.170 per share aggregating to Rs.4,000 crore. The amount will be invested through a fresh issue of equity shares by Fortis Healthcare to IHH Healthcare and it also has given a refinance facility of Rs.2,500 crore. And, its proceeds will be used to remove the business trust -Religare Healthcare Trust which is listed on Singapore stock exchanges.
The Board of Directors of Fortis Healthcare have also given their approval to this acquisition and have also said that they will remain committed to working towards the seamless closure of the transaction between them and the IHH healthcare. As CCI has approved the acquisition, IHH healthcare will be given an open offer to buy 26% stake from the open market at Rs.170 per share as specified under takeover code and according to this, IHH healthcare will own up to 57% stake.
Tags : #CCI #IHH #Healthcare #Acquire #Nod