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Fortis Healthcare inks pact for sale of hospital business operations at Vadapalani

22 Jun 2023 Evaluate

Fortis Healthcare has signed definitive agreements for sale of its hospital business operations at Vadapalani, Chennai to Sri Kauvery Medical Care (India) (SKMC / Kauvery Group of Hospitals), for a sale consideration of Rs 152 crore.

The transaction will be an all-cash deal and is estimated to be consummated by end of July 2023, subject to certain conditions as stipulated in the definitive agreements. The facility, which is on a leased premises, was commissioned in October 2020 and is located on the arterial Arcot Road. It currently has 110 operational beds with a potential to scale up-to around 200 beds.

The aforesaid divestment is a part of the Fortis’ ongoing portfolio rationalization strategy in order to focus on deepening its presence in select geographic clusters where it has a sizeable presence. The acquisition of Vadapalani facility is in line with Kauvery’s strategy to further expand its presence in Chennai, in addition to its existing facilities of more than 500 beds at Alwarpet & Radial Road.

Fortis Healthcare is an integrated healthcare delivery service provider in Asia. The healthcare verticals of the company span primary care, diagnostics, day care specialty and hospitals, with a healthcare network spanning various countries.

Fortis Healthcare Share Price

916.55 25.65 (2.88%)
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