Fortis is India’s second-largest hospital chain by market value.Late last year, TPG held exclusive negotiations to buy a sizeable stake in Fortis, but those talks did not fructify. The company’s market cap stands at Rs 11,446 crore.The promoters will dilute a minimum 26% and cede management control. Fortis is the sponsor of the Religare Health Trust (RHT) with a 29.6% equity stake. However, the transfer of assets to RHT has been putting pressure on the margins due to hefty services fee.Last October, Fortis Healthcare completed its acquisition of 51% economic interest in Fortis Hospotel, a subsidiary of RHT. Based on current market valuation of Rs 3,466 crore, delisting RHT would require Rs 2,426 crore.

Source: Economic Times May 03, 2017 19:30 UTC