Fortis shareholders approve acquisition of RHT Health Trust assets

Fortis Healthcare on Saturday said its shareholders have approved a resolution to acquire assets of RHT Health Trust.

In a regulatory filing, the company said 98.32% of the shareholders who participated in the process voted in favour of the resolution, while 1.67% voted against it.

In February, Fortis Healthcare had entered into definitive agreements to acquire entire portfolio of assets of the Singapore-listed entity for an enterprise value of Rs 4,650 crore.

The assets include 12 clinical establishments, four greenfield establishments and two operating hospitals.

The definitive agreement to acquire all the securities of clinical establishments and businesses indirectly held by RHT follows the approval of Fortis' board in November last year for a major restructuring aimed at consolidating the entire Indian asset portfolio.

On Friday, Fortis said it has appointed Arpwood Capital Private Ltd to advise the board on various sale bids.

The firm will act as financial advisor to the board to provide its independent opinion on the offers received or to be received from bidders for a potential significant equity investment and/or acquisition or restructuring of its assets, and on the appropriateness of the process put into place for dealing with the said offers, the healthcare major said in a regulatory filing.

Arpwood Capital Pvt Ltd is an investment banking firm engaged in providing merger, acquisition and capital raising advisory services.

Fortis Healthcare board is scheduled to meet on May 10 to take a decision on the binding bids for the company as recommended by the expert advisory committee (EAC).

Fortis Healthcare has already received binding offers from four entities - KKR-backed Radiant Life Care, IHH Healthcare, Manipal/TPG consortium, and Munjal and Burman family offices.

The fifth bidder, Fosun Health Holdings, an arm of Fosun International, which made a non-binding proposal to invest a total of $350 million (over Rs 2,295 crore) at a price up to Rs 156 per share, has so far not revised its offer.