IHH acquires controlling stake in Fortis Healthcare after preferential issue
After months of deliberations, Malaysia's IHH Healthcare Berhad on Tuesday finally became the controlling shareholder of Fortis Healthcare with a 31.1 per cent stake in the company.
Accordingly, Fortis' Board approved the allotment of over 23 crore units of equity shares through the preferential issue to Northern TK Venture Pte Ltd, a wholly owned indirect subsidiary of IHH Healthcare at Rs 170 per share of Rs 10 face value.
"With this preferential issue, IHH has, through NTK infused approximately Rs 4,000 crore of primary capital into the company and NTK has become the controlling shareholder in the company with 31.1 per cent stake on the expanded capital," Fortis said in a statement.
Consequently, IHH Healthcare's nominees have joined Fortis' board.
The new board would have Tan See Leng, MD and CEO of IHH Healthcare, along with other top IHH officials, Low Soon Teck, Chan Boon Kheng and Bhagat Chintamani Aniruddha, all as additional directors.
The reconstituted Board has a total of seven members with three current directors and four additional directors nominated by IHH healthcare.
The transfer of shares comes after the IHH Healthcare in July won the bid to invest Rs 4,000 crore.
(With inputs from agencies.)