Erstwhile Ranbaxy brothers who had sold it for a whopping amount to a Japanese firm, are now planning to sell off majority of their stake in corporate hospitals chain Fortis Healthcare, including its diagnostic arm SRL, and PE firms TPG and General Atlantic (GA) are reportedly holding talks on price.
ET reported in December 2016 that the Private Equity firm TPG is in race for acquisition of majority stake in Fortis but the deal did not materialize and now a sort of consortium is emerging to buy out the hospital chain. Currently, Singh borhters hold 52.3% majority stake in Fortis and plan to divest 85.6% of it for new investors in the healthcare giant.
Among the bidders, IHH Healthcare, Asia’s largest healthcare group, KKR and Bain Capital are some of the names popped up. Fortis, with a market cap of Rs.11,446 crore. The promoters are may dilute their share to give management control to new investment firms, said ET but IHH being another serious contender in the race, the dynamics of consortium may change at any time.
The markets have reacted positively to the news of Singh Brothers selling their majority stake in Fortis and depending on the possible suitor, the share price has been surging to 45% to its price in December. It reached the peak of Rs.229 on Wednesday and is hovering around Rs.218 today.