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Fortis Healthcare scraps plan to sell stake in RHT Health Trust, RHTTM

Fortis Hospitals owns 27.82 per cent stake in RHT, which includes 25.14 per cent holding by Fortis Healthcare International Ltd (FHIL) and 2.68 percent by the RHTTM, a unit of Stellant

twitter-logo BusinessToday.In   New Delhi     Last Updated: June 15, 2019  | 20:16 IST
Fortis Healthcare scraps plan to sell stake in RHT Health Trust, RHTTM
Fortis Healthcare completed the acquisition of RHT Health Trust assets earlier this year

Fortis Hospitals, India's leading super speciality hospital chain, on Saturday said it has decided to close the bidding and search process to explore the possibility of sale of interest in RHT Health Trust (RHT) and RHT Health Trust Manager Pte Ltd (RHTTM).

"No firm proposal which is commercially viable was received and no agreement (binding or non-binding) has been reached with any of these parties in connection with the potential transactions or any other transaction involving RHT and RHTTM," Fortis Hospitals said in a filing to the Bombay Stock Exchange.

"Pursuant to an open invitation to interested parties to submit proposals in connection with the potential transactions, a process to evaluate proposals was undertaken with professional advisers, and preliminary discussions were held with certain third parties concerning the potential transactions," it said.

The company further said that "since the bidding process to explore the potential transaction was inconclusive, it was decided to close the bidding and search process".

On April 8 this year, the company had announced that it was in talks with potential buyers to sell its stake in Singapore-listed Religare Health Trust (RHT). The company reportedly intended to use the fund proceed to plough back into the Fortis business in India.

Fortis Hospitals owns 27.82 per cent stake in RHT, which includes 25.14 per cent holding by Fortis Healthcare International Ltd (FHIL) and 2.68 percent by the RHTTM, a unit of Stellant. FHIL and Stellant are both wholly-owned subsidiaries of Fortis Healthcare.

Earlier in January this year, Fortis Healthcare completed the acquisition of RHT Health Trust assets, which is promoted by brothers - Malvinder Singh and Shivinder Singh - who resigned from the board of Fortis Healthcare in 2018. In February 2018, Fortis had announced that it will acquire RHT's entire portfolio of assets for an enterprise value of Rs 4,650 crore.

Edited by Chitranjan Kumar

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