FORTIS BOARD OKAYS RHT PORTFOLIO BUY FOR ₹4,650 CR

NEW DELHI: Fortis Healthcare board has approved the proposed acquisition of the entire portfolio of Singapore-listed RHT Health Trust (RHT) for an enterprise value of around ₹4,650 crore. The move is part of a restructuring initiative aimed at consolidating the entire Indian asset portfolio comprising various clinical establishments and two operating hospitals of RHT Health Trust into Fortis.

Fortis and RHT have inked a pact proposing the acquisition of all the securities of RHT’s entities in India holding, clinical entities and businesses via purchase of securities for an enterprise value of around ₹4,650 crore, Fortis said in a statement. This includes ₹1,152 crore of debt on RHT’s books as on date, it added.

“This restructuring is a significant initiative and will integrate RHT’s India-based asset portfolio into Fortis while also improving the overall financial health of the business,” Fortis Healthcare CEO Bhavdeep Singh said.

The proposed purchase of securities will be conducted on an arm’s length basis, he added. “The proposed transaction would be funded by Fortis with a combination of equity, quasi-equity and/or debt. Fortis has an enabling resolution in place to raise capital for up to ₹5,000 crore.”

The proposed deal will be subject to approvals by different stakeholders, he added.

Fortis has an indirect interest of 29.76% in RHT. The term sheet signed by both Fortis and the trustee-manager of RHT is intended to set out the basis for further discussion in respect of the proposed transaction. Both Fortis and RHT have entered into an exclusivity period for 60 days commencing from the date of the term sheet to execute definitive agreements for the transaction.