FORTIS SEES IMPROVEMENT
Indian hospital operator secures shareholders’ approval for takeover by IHH Healthcare
CASH-strapped Indian hospital operator Fortis Healthcare Ltd said yesterday it was starting to see some signs of recovery as it secured shareholders’ approval for its takeover by IHH Healthcare Bhd.
Fortis, which operates about 30 private hospitals in India, reported a net loss of 707.4 million rupees (RM40 million) for the three months ended June 30 and has now been in the red for five of the last six quarters, as it struggled with a cash crunch, rising debt and other problems.
However, it said occupancy rates at its hospitals had risen to more than 69 per cent from 62 per cent in the quarter through June.
The first-quarter loss reversed a 52.9 million rupee profit in the same period a year earlier, and income from operations fell 9.9 per cent in the first quarter from a year earlier to 10.4 billion rupees.
“The last quarter performance was impacted severely due to the continuing challenges that the company had been facing over the last 18 months that have led to liquidity issues,” said chief executive Bhavdeep Singh.
The company said it aimed to reach average occupancy levels for its hospital business of more than 70 per cent by the fourth quarter of fiscal 2019.
Its shareholders approved IHH Healthcare’s takeover bid for Fortis, ending months of speculation over control of the company.
IHH will invest 40 billion rupees at 170 rupees per share in Fortis.
The prolonged takeover battle drew interest from five international and local suitors, eyeing ownership of Fortis amid a private healthcare boom in India.