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Fortis Healthcare likely to raise $175 million by end of December

15 Nov 2011 Evaluate

Fortis Healthcare (India), the leading corporate hospital chain is likely to raise $175 million in debt by the end of December to finance the purchase of Singapore-based Fortis Healthcare International. To bring all the group's healthcare businesses under one roof Fortis had planned to acquire Fortis Healthcare International, fully owned by its promoters Malvinder and Shivinder Singh. 

Other than $175 million debt issue for which, the road shows will begin next week, the firm will take over the debt of the Singapore company, accounting for the balance of the deal value. After this deal the debt-equity ratio at Fortis India would rise to 1 from 0.28 now.

The company has reported a consolidated loss of Rs 12.6 crore for July-Sept, compared to a net profit of Rs 74.8 crore in the year ago quarter on the back of losses due to the opening of new facilities and higher borrowing costs. Total income rose 70% to Rs 610 crore on the consolidation of diagnostic chain Super Religare Laboratories that Fortis acquired earlier this year.

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