A patient undergoes dialysis, aided by a Fresenius Medical Care AG machine, at a Fortis Healthcare India Ltd. Renkare dialysis clinic in New Delhi, India. (Photographer: Prashanth Vishwanathan/Bloomberg)

Fortis EGM On Aug. 13 To Seek Shareholders Nod On Stake Sale To IHH

Fortis Healthcare Ltd. today said an extraordinary general meeting of the company will be held on Aug. 13 to seek shareholders’ nod for its acquisition by Malaysia’s IHH Healthcare.

Last week, Fortis Healthcare’s board had approved a Rs 4,000-crore offer from IHH Healthcare for a 31.1 percent stake in it, valuing the cash-strapped firm at Rs 8,880 crore.

The transaction, to be carried out via IHH Healthcare’s arm Northern TK Venture Pte Ltd, was to be followed up by an open offer for an additional 26 percent stake in Fortis.

In a notice for the EGM, Fortis Healthcare said the consent of shareholders is being sought for issuance of 23,52,94,117 equity shares on a preferential basis at Rs 170 apiece aggregating up to Rs 4,000 crore to Northern TK Venture Pte Ltd.

Also read: Fortis Board Approves Binding Bid From Malaysia’s IHH Healthcare 

The company is also seeking nod from shareholders to reclassify Malvinder Mohan Singh, Malvinder Mohan Singh-Trust, Shivinder Mohan Singh, Harpal Singh, Abhishek Singh, Fortis Healthcare Holdings Pvt Ltd, Malav Holdings Pvt Ltd and RHC Holding Pvt Ltd from the ‘promoter and promoter group’ shareholder category to ‘public’ shareholder category.

The company will also ask shareholders to approve classification of Northern TK Venture Pte Ltd as ‘promoter’ subsequent to the completion of the preferential allotment of equity shares, Fortis Healthcare said.

IHH Healthcare is expected to shell out a total of Rs 7,300 crore to acquire a 57.1 percent stake, provided its open offer for a 26 percent stake is fully subscribed.

The Malaysian healthcare chain, which will gain majority control of India’s second-largest hospital chain has already stated that in the long term it would rebrand Fortis hospitals into its own Gleneagles chain.

Shares of Fortis Healthcare Ltd today closed 2.96 percent lower at Rs 137.50 apiece on the BSE.

Also read: Wanted: A Nurse for Fortis Who Won’t Kill It