November 24th 2023.
Fortis Malar Hospitals Limited, a well-known healthcare delivery service provider based in Chennai, made an announcement on Friday. It has signed a definitive agreement for the sale of its business operations related to Fortis Malar hospital situated at Gandhi Nagar, Adyar Chennai to MGM Healthcare Private Limited. The sale consideration is approximately Rs 45,50,00,000.
The announcement was made through an exchange filing. In addition to this, Fortis Healthcare's two wholly-owned subsidiaries, namely Fortis Health Management Limited and Hospitalia Eastern Private Limited, will divest the OPD and radio diagnostics business operations related to the Malar Hospital and the adjacent land parcels to MGM. Fortis Healthcare has a 62.7% percent equity stake in the Company.
This transaction will be an all-cash deal and is expected to be completed by the end of January 2024. It is subject to certain conditions precedent and closing conditions as mentioned in the definitive agreements. These include approvals from shareholders of both the Company and Fortis Healthcare.
The divestment is part of Fortis Healthcare's ongoing portfolio rationalization strategy. This is to focus on deepening its presence in select geographic clusters where it has a sizeable presence.
The shares of Fortis Malar Hospitals Limited were at Rs 70 at 3:30 pm IST on Friday, which is a decrease of 1.39 percent.
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