Date:08/09/2007 URL: http://www.thehindu.com/2007/09/08/stories/2007090856351700.htm

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Business

Fortis Healthcare buys into Malar Hospitals

Staff Correspondent

Subsidiary IHL and Oscar Investments pick up 53 p.c.

— Photo: Kamal Narang

Shivinder Mohan Singh, Managing Director, Fortis Healthcare.

CHENNAI: The International Hospital Ltd. (IHL), a wholly owned subsidiary of Fortis Healthcare Ltd of the Ranbaxy group, along with Oscar Investments Ltd., has entered into an agreement to buy equity shares of Malar Hospitals.

In a notification to the Bombay Stock Exchange, Fortis has informed that its subsidiary IHL and Oscar Investments would together acquire 39 lakh equity shares from the promoters of Malar Hospitals. This represents 28 per cent of its present paid-up equity capital.

Under the agreement, the two outfits will also be given 46.66 lakh shares, representing 25.10 per cent of the fully expanded voting equity capital, by way of preferential allotment, consequent to conversion of loan into equity. As a result, Fortis Health’s stake in Malar Hospitals will go up to 53.10 per cent.

The notification however is silent on the acquisition price. Following this, IHL and Oscar Investments will come out with an open offer to conform to the SEBI guidelines on takeover.

Manipal Hospital, Apollo Group, Sri Ramchandra Hospital and Mallya Hospital had earlier evinced interest Malar Hospitals for a takeover. The hospital has a significant exposure to debt.