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Shareholders of Fortis Healthcare has approved the acquisition of India’s second largest hospital chain by Malaysia’s IHH Berhad, as the 99.7% of shareholder voted in the favor for the issuance of 235.9 million shares through preferential allotment comprising 31% of stake in the company. The approval will provide Fortis with a fresh funding of Rs. 4000 crores.
The entire deal consists of US$ 1.1 Billion which will provide 75% control of the Fortis Healthcare to the parent company of IHH Berhad, Northern TK Venture Pvt. Limited. The entire deal will take place after the issuance of the approval by the Competition Commision Of India (CCI).
The company also released their financial report for the first quarter of the fiscal year 2019 with a net loss of Rs. 53 crores as against the profit of Rs. 23 crores in the previous year corresponding period.
Fortis Healthcare revenue declined by 9.9% in comparison to last year June-end quarter to Rs. 1042 crores in the Q1 FY19. EBITDA witnessed a 90.6% downfall to Rs. 8.1 crore in the quarter under review from Rs. 86.1 crores in the last year same quarter.
