IHH Healthcare Launches Open Offer to Acquire 26.1% Stake in Fortis Healthcare

IHH Healthcare Berhad has launched an open offer to acquire an additional 26.1% stake in Fortis Healthcare Ltd. after receiving approval from the Securities and Exchange Board of India, the hospital chain said in a filing Thursday.

The Malaysian healthcare major, through its subsidiary Northern TK Venture Pte. Ltd., already holds a 31.1% stake in Fortis. The long-pending offer — first announced in 2018 — had been delayed for seven years due to legal disputes involving Fortis’ former promoters.

The open offer includes 197.3 million equity shares at ₹170 apiece, valuing the deal at about ₹33.5 billion. IHH has also offered to pay ₹53.80 per share as interest to the original shareholders.

However, the offer price is nearly 79% lower than Fortis Healthcare’s current market value. On Thursday, Fortis shares closed 1.3% higher at ₹1,068.85 on the National Stock Exchange. Analysts said the offer may largely remain a formality unless the company revises the price upward.

The transaction will be carried out through IHH’s subsidiaries Northern TK Venture Pte. Ltd. and Parkway Pantai Ltd.