MUMBAI: Fortis Healthcare Ltd said on Friday it accepted an investment offer from Malaysia's IHH Healthcare Bhd, capping a months-long bidding war for control of the firm that drew interest from domestic and international suitors.
Cash-strapped Fortis said IHH will invest Rs 4,000 crore ($584.11 million) at Rs 170 per share in the company that operates about 30 private hospitals in India, where the race to cash in on a private healthcare boom is heating up.
The offer is at a 19.5 per cent premium to Fortis' closing price on Thursday.
Northern TK Venture Pte Ltd, Singapore, a unit of IHH, will be issued 235.3 million new Fortis shares through a preferential allotment, giving it roughly 31 per cent of the company's total voting equity share capital.
IHH said in a separate statement it expects the deal to be completed in the fourth quarter and does not expect it to have any material effect on profits for the fiscal year ending December 31.
Recent developments in the healthcare industry made Fortis an attractive takeover target. Manipal Health Enterprises Ltd, along with private equity firm TPG Capital, and KKR & Co-backed Radiant Life Care Pvt Ltd had also bid for stakes in Fortis.
Private healthcare spending in te country is rising, and the government is working on expanding insurance to hundreds of millions of people in a country that lacks adequate heath facilities. The insurance scheme is expected to benefit private hospitals such as those run by Manipal and Fortis, analysts say.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.