Fortis Healthcare’s subsidiary - Fortis Healthcare International, has decided to sell its 100% stake in Altai Investments, the holding company for Quality Healthcare (QH), Hong Kong, to Bupa, for $355 million. The offer price is reflective of the value and efficiencies added through improved operations and the introduction of new and specialized medical centres while QH has been a part of the Fortis group.
The company has taken this step in line with its strategic decision to intensify its focus on core hospital and diagnostic business in India and to reduce its debt. JP Morgan and Religare Capital Markets acted as financial advisors to Fortis for this transaction and the deal is expected to be completed in October 2013.
Fortis has demonstrated remarkable fiscal prudence and slashed its debt in the preceding 12 months. Pursuant to the above transaction, the company’s net debt equity position is expected to be less than 0.3x down from 1.6x as on September 30, 2012.
Company Name | CMP |
---|---|
Aster DM Healthcare | 362.80 |
Apollo Hospital Ent. | 5850.75 |
Max Healthcare Inst | 752.20 |
Narayana Hrudayalay | 1190.00 |
Global Health | 1192.90 |
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