Fortis Healthcare To Merge Hospital Business Into Manipal Hospitals

| March 28 , 2018 , 11:21 IST

Fortis Hospitals on Tuesday announced the merger of its hospital business with Manipal Hospitals. This move will result in the creation of the largest provider of healthcare services in India by revenue.

The company said in a statement, "The Board has also approved the sale of its 20 percent stake in SRL Ltd. to Manipal Hospitals. The resultant entity Manipal Hospitals will be a publicly traded company listed on NSE and BSE. The remaining FHL will be an investment holding company with 36.6 percent stake in SRL."

The company further said, "As part of the proposed transaction, Dr Ranjan Pai and TPG will invest Rs 3,900 crore into Manipal Hospitals. The funds will be utilised by Manipal Hospitals to finance the acquisition of 50.9 percent stake in SRL."

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FHL also said the combination of Manipal Hospitals and Fortis Hospitals will "result in the creation of the largest provider of healthcare services in India by revenue with 41 hospitals in India and 4 hospitals overseas and over 11,000 installed bed capacity, including teaching hospital beds of Manipal Hospitals."

It will have over 4,200 doctors, more than 9,300 nurses and 11,400-plus other employees across India, the statement added.

Manipal Hospitals, part of Manipal Education and Medical Group (MEMG), is owned by Dr Ranjan Pai and has been backed by TPG, a leading global alternative asset firm and experienced healthcare investor since 2015.

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Bhavdeep Singh, CEO of Fortis Healthcare said, "We believe Manipal has built a terrific franchise and team and the coming together of our two organisations will be transformational for the healthcare industry.”

Manipal Hospitals also is in discussions to buy 30.9 percent held by other investors in the diagnostics chain.

The investment will also support the proposed acquisition of hospital assets owned by RHT Health Trust and the growth of the hospitals and the diagnostics businesses.

Fortis' main backers, Malvinder Singh and Shivinder Singh, resigned from its board last month following legal troubles.

The Singh brothers said, "We continue to support the management and the board to successfully transition to the new joint entity."