Fortis shareholders give nod for stake sale to IHH

Fortis Healthcare today said its shareholders have given nod to the company's acquisition by Malaysia's IHH Healthcare.

The shareholders of Fortis Healthcare have by an overwhelming majority of 99.69 percent voted in favor of the issuance of equity shares on a preferential allotment basis, it said.

They have also approved by 99.99 percent votes to reclassify members of promoter/promoter group to public shareholder category and classification of Northern TK Venture Pvt Ltd as a promoter, it added.

Besides, they have approved an increase in authorized capital of the company and alteration of the capital clause of a memorandum of association of the company, it added.

Fortis Healthcare Chairman Ravi Rajagopal said: "I am delighted to announce that we have received an overwhelming 99.7 percent votes in favor of the preferential allotment to IHH, from the shareholders who voted."

With this shareholder approval of preferential allotment of shares, the transaction is now awaiting other regulatory approvals, he added.

"We believe a partnership with IHH will further strengthen Fortis' operational platform and open new opportunities thereby placing the company in a far more strong and resilient position," Rajagopal said.

Earlier, in a notice for the EGM in July, Fortis Healthcare had said that the consent of shareholders is being sought for issuance of 23,52,94,117 equity shares on preferential basis at a price of Rs 170 per share aggregating up to Rs 4,000 crore to Northern TK Venture Pte Ltd.

The company had also sought nod from shareholders to reclassify Malvinder Mohan Singh; Malvinder Mohan Singh - Trust; Shivinder Mohan Singh; Harpal Singh, Abhishek Singh; Fortis Healthcare Holdings Pvt Ltd; Malav Holdings Pvt Ltd and RHC Holding Pvt Ltd from the 'Promoter and Promoter Group' shareholder category to 'Public' shareholder category.

It had asked shareholders to approve classification of Northern TK Venture Pte Ltd as 'Promoter' subsequent to the completion of the preferential allotment of equity shares.

On the EGM, Fortis Healthcare CEO Bhavdeep Singh said: "Our shareholders have supported and approved the recommended IHH offer, the proceeds of which will allow us to normalize our working capital and strengthen the overall balance sheet."

On July 13, the Fortis Healthcare board had approved an Rs 4,000-crore offer from IHH Healthcare for 31.1 percent stake in it, valuing the cash-strapped firm at Rs 8,880 crore.

The transaction, to be carried out via IHH Healthcare's arm Northern TK Venture Pte Ltd, was to be followed up by an open offer for an additional 26 percent stake in Fortis.

IHH Healthcare is expected to shell out a total of Rs 7,300 crore to acquire 57.1 percent stake, provided its open offer for 26 percent stake is fully subscribed.

The Fortis stock closed 0.86 percent up at Rs 146.05 on BSE.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)