Fortis Healthcare promoters to sell 16.5% stake for Rs 900 crore: report

Fortis Healthcare promoters are likely to sell 16.5 per cent stake in their hospitals chain via Offer for Sale (OFS) and private placement route, according to media reports. The company is likely to raise Rs 900 crore via sale of shares, the reports said.
 
Fortis, India's No. 2 hospitals chain after Apollo Hospitals Enterprise runs healthcare facilities in Singapore, Malaysia, the Gulf and other Asian countries and had a consolidated net debt of $1.1 billion at end-June.

In November, the company's board had approved the setting up of a committee that would explore various means to raise funds.

Fortis Healthcare is likely to sell 6.5 per cent stake via OFS and 10 per cent stake via private placement route, the reports said.

According to market regulator Sebi's guidelines, listed companies should have a minimum 25 per cent of public float before June 2012. Fortis promoters - Malvinder Singh and Shivinder Singh - hold 81 per cent stake in the company.

At current market price of Rs 113.65, the 16.5 per cent stake in the company is valued at Rs 760 crore.

A spokesperson told NDTV Profit that the company has been looking to raise funds.

Earlier this month, Fortis Healthcare announced plans to raise A$270 million through divestment of its Australia dental business, a move that would cut its debt. The company said it is selling its 64 percent stake in Dental Corp Holdings Ltd, Australia, to British medical services group Bupa to focus on high-end healthcare operations in Asia.

The entire proceeds will be used to reduce the group's debt, Fortis group Chief Executive Vishal Bali had said.

In September, Religare Health Trust, managed by Fortis, raised about $418 million through an initial share sale in Singapore last month.


(With inputs from Reuters)