Anti-trust regulator Competition Commission of India (CCI) has approved the IHH Healthcare’s acquisition of a controlling stake in Fortis Healthcare.
“We understand that CCI has approved the proposed Fortis-IHH transaction. We remain committed to work towards the seamless closure of the transaction.” Fortis said in a statement.
Earlier on July 13, Fortis Healthcare board had approved Rs 4,000-crore offer from Malaysia’s IHH Healthcare for 31.1 percent stake in it, valuing the cash-strapped firm at Rs 8,880 crore thus ending months of takeover battle.
With the approval from CCI approval, IHH will be able to make an open offer for an additional 26 percent stake. This will help IHH Healthcare to gain majority control of India’s second-largest hospital.
The Malaysian healthcare major which offered to infuse the capital at Rs 170 per share pipped rival Manipal-TPG combine’s Rs 2,100-crore offer at Rs 160 per share.
As per the proposal, IHH will have the right to control two-thirds of the seats on the Fortis board.
IHH Healthcare, world’s second largest healthcare group by market capitalisation, is operating in 9 countries with about 10,000 beds across 49 hospitals. The hospital major offers the full spectrum of integrated healthcare services from clinics to hospitals to quaternary care and a wide range of ancillary services.
With inputs from PTI.
First Published: IST