IHH Becomes Controlling Stakeholder In Fortis After Share Allotment
Malaysian healthcare major IHH Healthcare Bhd. became the majority shareholder in cash-strapped Fortis Healthcare Ltd. after allotment of equity shares through preferential issue.
IHH will effectively hold 31.1 percent stake in Fortis, the New Delhi-based hospital chain said in an exchange filing. Northern TK Venture Pte Ltd., a unit of IHH, was allotted 23.5 crore shares at Rs 170 apiece, according to the filing. Tan See Leng, managing director and chief executive officer of IHH, was appointed as an additional director of Fortis board with immediate effect.
Shares of Fortis rose 1.7 percent to Rs 142 at close after the announcement. The stock has declined 11.7 percent this year compared with 4.5 percent gain in the S&P BSE Sensex.
IHH Healthcare won the race to take control of Fortis in July this year, outbidding rival TPG-Manipal consortium in the final round.