Signals, Powered By EquityPandit
Fortis Healthcare has received approval from its board, to demerge its hospital business to Manipal Hospital Enterprises.
The board has also given approval to sale of its 20% stake in SRL, to Manipal Hosptials. The merged entity Manipal Hospitals will be a publicly traded company listed on BSE and NSE. The remaining part of the Fortis Healthcare will be an investment holding company with 36.6% stake in SRL.
As a part of the proposed transaction, Dr. Ranjan Pai and TPG will invest Rs.3,900 crore in Manipal Hospitals. The funds will be used by Manipal Hospitals, to finance the acquisition of 50.9% stake in SRL.
Furthermore, the association of Manipal Hospitals and Fortis Hospitals will lead to creation of the largest provider of healthcare services in India by revenue with 41 hospitals, 4 hospitals overseas and 11,000 plus installed bed capacity (including teaching hospital beds of Manipal Hospitals). It will have a staff pool consisting of 4,200 doctors, 9,300 nurses and 11,400 other employees across India.
