NEW DELHI: The outcome of ongoing investigations into Fortis Healthcare will not impact its deal with Manipal Hospitals and TPG, Fortis chief executive Bhavdeep Singh said on Wednesday.The deal involves Fortis Healthcare demerging its hospitals business and combining that with Manipal, as well as selling a majority stake in its diagnostic unit to the Bengaluru-based group. There is no timeline for when the investigations will conclude, he added.The Securities Exchange Board of India and Serious Fraud Investigation Office are probing an alleged misappropriation of funds and related-party transactions at Fortis Healthcare. Earlier this month, Fortis Healthcare itself enlisted law firm Luthra&Luthra to investigate an allegation that promoters Malvinder and Shivinder Singh had siphoned cash from the company.The conclusion of the deal is not contingent upon the outcome of these investigations, the Fortis CEO said. Based on Wednesday’s closing share price, the company is valued at Rs 6,400 crore.The deal undervalues Fortis Healthcare due to issues that the group has faced recently, while Manipal has grown over the last 18 months, Singh suggested. The brothers have challenged the arbitration award in favour of Daiichi.

Source: Economic Times March 28, 2018 12:10 UTC