IHH completes investment in Fortis Health

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Mumbai | Published: November 14, 2018 1:25:21 AM

Fortis Healthcare on Tuesday said its board has approved the allotment of approximately 23.52 crore shares to Northern TK Venture — a wholly-owned, indirect subsidiary of IHH Healthcare Berhad — at Rs 170 per share, thereby completing the investment of IHH in Fortis.

Fortis indicated that following this, the mandatory open offer for acquiring up to 26% of the expanded capital from the existing shareholders of Fortis at Rs 170 per share for a consideration of up to Rs 3,300 crore would be completed in due course.

Fortis Healthcare on Tuesday said its board has approved the allotment of approximately 23.52 crore shares to Northern TK Venture — a wholly-owned, indirect subsidiary of IHH Healthcare Berhad — at Rs 170 per share, thereby completing the investment of IHH in Fortis.
“With this preferential issue, IHH has, through NTK, infused approximately Rs 4,000 crore of primary capital into the company, and NTK has become the controlling shareholder in the company with nearly 31.1% stake on the expanded capital,” Fortis said in a statement.

Fortis indicated that following this, the mandatory open offer for acquiring up to 26% of the expanded capital from the existing shareholders of Fortis at Rs 170 per share for a consideration of up to Rs 3,300 crore would be completed in due course.

Depending on the shares tendered by the shareholders of Fortis, IHH-NTK would have between 31.1% to 57.1% stake on the expanded capital.

The Fortis board on Tuesday also approved the appointment of IHH-NTK’s nominees to the board.
Tan See Leng, the managing director and chief executive officer of IHH Healthcare Berhad, has been appointed an additional director of Fortis with immediate effect.
Low Soon Teck, the group chief financial officer of IHH Healthcare Berhad, has also been appointed an additional director of Fortis along with Chan Boon Kheng and Bhagat Chintamani Aniruddha.

The reconstituted board will have a total of seven members with three current directors and four additional directors nominated by IHH.
Ravi Rajagopal, chairman, board of directors, Fortis Healthcare, said in a statement that the reconstituted board will actively provide strategic direction and vision to the company. “The board will be working closely with management to further strengthen governance and internal control frameworks on par with other leading organisations,” he said.

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