Fortis Malar Hospitals To Divest Its Business Operations To MGM Healthcare In Chennai

Fortis Malar Hospitals Limited, a renowned healthcare delivery service provider in Chennai, on Friday announced the signing of a definitive agreement for the sale of its business operations pertaining to Fortis Malar hospital situated at Gandhi Nagar, Adyar Chennai (Malar Hospital) to MGM Healthcare Private Limited (MGM), a prominent healthcare delivery service provider, for a sale consideration of approx. Rs 45,50,00,000, the company announced through an exchange filing.

Adjunct to this transaction, the OPD and radio diagnostics business operations related to the Malar Hospital (including the land and building) and the adjacent land parcels are also being divested by two wholly owned subsidiaries of Fortis Healthcare Limited (Fortis Healthcare), namely – Fortis Health Management Limited (FHML) and Hospitalia Eastern Private Limited (HEPL) to MGM. Fortis Healthcare owns a 62.7% percent equity stake in the Company.

The transaction will be an all-cash deal and is expected to be consummated by end of January 2024; subject to certain conditions precedent and closing conditions as stipulated in the definitive agreements including the approvals from shareholders of both the Company and Fortis Healthcare.

Additionally, the said divestment is also a part of Fortis Healthcare’s (viz. the largest and majority shareholder of the Company) ongoing portfolio rationalization strategy in order to focus on deepening its presence in select geographic clusters where it has a sizeable presence.

Fortis Malar Hospitals Limited shares

The shares of Fortis Malar Hospitals Limited on Friday at 3:30 pm IST were at Rs 70, down by 1.39 percent.

Published on: Friday, November 24, 2023, 05:50 PM IST