NEW DELHI: Shares of Fortis Healthcare climbed over 10 per cent in Monday’s trade after the company informed stock exchanges that it has completed acquisition of a 51 per cent stake in Fortis Hospital. The stock gained after the company said it had acquired compulsorily convertible preference shares issued by Escort Heart Institute and Research Centre.Following the development, the stock rose 10.50 per cent to hit a high of Rs 188.25 on BSE . We envisage free cash flow generation FY19 onwards to lead to re-rating. We initiate coverage with a buy rating and a target price of Rs 265 (SOTP value of Rs 208 per share for Fortis and Rs 57 per share for subsidiary SRL),” brokerage Edelweiss Securities said in a recent note.The company said the acquisition was subject to approval of shareholders Singapore Exchange Securities Trading and unit holders of RHT Health Trust . The company has obtained the requisite approvals and has subsequently closed the acquisition transaction, it said.

Source: Economic Times October 17, 2016 05:03 UTC