Fortis Healthcare Offers $711 Million to Buy RHT Health Assets
Fortis currently has an indirect interest of 29.76% in Singapore-based RHT.
(Bloomberg) -- Fortis Healthcare Ltd., India’s second-largest private hospital chain by market value, offered to buy all assets of its Singapore-listed trust RHT Health Trust for 46.5 billion rupees ($711 million). Shares of the health trust climbed the most on record.
Fortis will acquire all of RHT’s Indian subsidiaries, a 49 percent interest in Fortis Hospotel Ltd., and the entire asset portfolio of RHT, which includes clinics and hospitals in India, according to a filing to the Singapore Exchange Wednesday.
RHT jumped as much as 19 percent in Singapore trading, the most since it was listed five years ago. The stock climbed 11 percent to S$0.90 as of 9:29 a.m., with trading volume at more than 1,000 percent of the three-month daily average, according to data compiled by Bloomberg.
The proposed transaction would enhance value for Fortis’s stakeholders, the Indian hospital operator said in a separate statement.
Fortis currently has an indirect interest of 29.76 percent in Singapore-based RHT, according to the filing. The two parties agreed on a 60-day exclusivity period for the negotiations. RHT’s trustee-manager appointed Bank of America Corp. as its exclusive financial adviser.
To contact the reporter on this story: Sterling Wong in Singapore at swong470@bloomberg.net.
To contact the editors responsible for this story: K. Oanh Ha at oha3@bloomberg.net, Lena Lee, Dave McCombs
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