Fortis-RHT trust amends acquisition agreement

Fortis Healthcare on Friday said the acquisition of hospital assets held under RHT Health Trust could be delayed. The hospital chain informed the stock exchange it had amended its agreement with RHT Health Trust to extend the long stop for acquisition from September 30 to December 31. ANEESH PHADNIS writes

Fortis Healthcare Ltd (FHL) on Friday said the acquisition of hospital assets held under RHT Health Trust could be delayed. The hospital chain informed the stock exchange on Saturday that it had amended its agreement with RHT Health Trust. This is to extend the long stop for acquisition from September 30 to December 31. A long stop date refers to the date by when conditions before the transaction are met or else the transaction can be terminated.

FHL and RHT had entered into definitive agreements in February to acquire the entire portfolio of RHT for an enterprise value of ~46.5 billion. In a stock exchange filing, Fortis said both the companies had decided to extend the long stop date to December. This is because Fortis is in the process of raising funds via a share issue to IHH Healthcare. Proceeds from share sale will be used for the acquisition of RHT Health’s assets. On July 13, the Fortis Healthcare board had approved a ~40 billion offer from IHH Healthcare for 31 per cent stake in the hospital chain. Earlier this month, Fortis shareholders approved the share sale transaction.