Fortis climbs over 3% after IHH wins race

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Fortis Healthcare advanced more than 3 per cent on Friday on reports that the hospital chain has approved binding investment offer from IHH for equity infusion of Rs 4,000 crore.

This will be by way of preferential allotment at a price per share of Rs 170 per share.

The bid price offers a premium of around 20 per cent to the current market price and 30 per cent to the unaffected price as on July 2. The investment will also address the liquidity concerns of India’s second largest hospital chain, Fortis said in a statement on Friday.

IHH will also launch an open offer of up to Rs 3,300 crore to acquire an additional 26 per cent at a price nor less than Rs 170 per share. Their proposal provides for refinance of debt to the extent of Rs 2,500 crore.

Funds infused will be used for completion of acquisition of assets of RHT, SRL private equity minority shareholders and short term liquidity needs.

According to Ravi Rajagopal, Chairman, Board of Directors, the board has announced its approval of the IHH binding proposal.

In a release, he said: “The IHH proposal offers a more strategically and financially compelling proposition, along with simplicity and certainty. The process was relaunched on May 29, 2018, and has been conducted in a fair, time-bound and transparent manner.”

Source: Economic Times