Fortis Healthcare to consolidate domestic, global operations

Sep 19, 2011 |

New Delhi

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Fortis Healthcare India on Monday said it will acquire Fortis Healthcare International Pte Ltd from a firm owned by its promoters, the Singh brothers, as part of consolidation of domestic and global operations.

The company also announced a top-level structure, under which Malvinder Singh will become executive chairman of the consolidated Fortis Healthcare group, while Shivinder Mohan Singh will be the executive vice-chairman.

"In a meeting held today, the board of directors of Fortis Healthcare India has approved the acquisition of Fortis Healthcare International from RHC Financial Services (Mauritius) Ltd," the company said.

RHC Financial Services is a a company owned by the promoters of Fortis Healthcare India -- Malvinder Singh and Shivinder Singh.

The company further said: "The valuation will be advised by an independent valuation agency, to be appointed by a committee of independent directors for the purpose."

Further, the board has decided, subject to necessary approvals, to change the name of Fortis Healthcare India to Fortis Healthcare Ltd, it added.

Commenting on the deal, Fortis Healthcare Group chairman Malvinder Singh said: "Our vision is to create a leadership position in integrated healthcare delivery in the pan-Asia Pacific region. This integration is a fundamental step in that direction."

He said the demand for better healthcare is rising sharply in the Asia-Pacific region, with increasing urbanisation, an ageing population and access to new medical technologies, and the group would look to capture the opportunity.

After the consolidation, Vishal Bali will be the Global CEO of Fortis Healthcare, while the Indian operations will be headed by Aditya Vij, as its India CEO, who will focus on the Indian expansion, while the international business will be headed by Eng Aik Meng and will focus on all expansion outside India.

Following the consolidation, the combined network will have over 74 hospitals, with more than 12,000 beds, 580 primary care centres, 188 day care specialty centres, 190 diagnostic centres and a base of over 23,000 employees.

At present, Fortis Healthcare India has 66 hospitals and 190 diagnostic labs across India, while Fortis Healthcare International owns Quality Healthcare Ltd, a primary care network in Hong Kong with 580 centres; and Dental Corporation Pty Ltd, a dental care network in Australia and New Zealand with 174 centres, among others, in the Asia-Pacific region.

Fortis Healthcare India's scrip was trading at Rs 152.15 on the BSE during afternoon trade, up 3.43 per cent from its previous close.

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