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Malaysia-based IHH Healthcare has been approved by anti-trust regulator Competition Commission of India (CCI) for the acquisition of a controlling stake in India’s second largest hospital chain Fortis Healthcare. This was the last major approval pending for the deal to be completed.
Fortis Healthcare said in a statement, “We understand that the Competition Commission of India has approved the proposed Fortis-IHH transaction. We remain committed to working towards the seamless closure of the transaction.”
During the month of August this year, Fortis shareholders approved the deal, as the 99.7% of shareholder voted in the favour for the issuance of 235.9 million shares. The board of directors of Fortis Healthcare on July 13 unanimously approved a binding investment proposal from IHH to invest Rs 4,000 crore by way of preferential allotment.
Under the proposed deal IHH Healthcare will give an open offer to buy 26% stake from the open market at Rs 170 per share as stipulated under takeover code. Depending upon the response from the open offer, IHH will own up to 57% stake.
Since IHH’s post-acquisition stake in Fortis will exceed 25 per cent, it is required to extend an offer to buy an additional 26 per cent from existing shareholders at a price not less than the one at which the stake is being bought.
