The deal is subject to approval of regulators and Fortis, Manipal shareholders
Fortis Healthcare Ltd's board on Tuesday approved demerger of the company's hospitals business into Manipal Hospital Enterprises Pvt Ltd, creating the largest provider of healthcare services in India by revenue. The Fortis Healthcare board of directors also gave nod to sale of a 20 per cent stake in SRL, its diagnostics arm, for Rs 720 crore. As part of the deal, for every 100 Fortis shares held, a shareholder will receive 10.83 shares in Manipal Hospitals. The combined company will be called Manipal Hospitals and will be listed on stock exchanges BSE and NSE, Fortis said. The businesses remaining with Fortis Healthcare will be an investment holding company with 36.6 per cent stake in SRL, the Gurgaon-based company said. The deal is is expected to be completed in approximately twelve months, it added.