Fortis Healthcare amends acquisition agreement with RHT Health Trust

Fortis Healthcare
Fortis Healthcare Ltd (FHL) on Friday said the acquisition of hospital assets held under the RHT Health Trust could be delayed.

 

The hospital chain informed the stock exchange on Friday that it had amended its agreement with RHT Health Trust to extend the long stop for acquisition from September 30 to December 31.

 

A long stop date refers to the date when conditions precedent to the transaction are met or else transaction can be terminated.

 

FHL and RHT had entered into definitive agreements in February to acquire an entire portfolio of RHT for an enterprise value of Rs 46.5 billion.

 

In a stock exchange filing, Fortis said both the companies had decided to extend the long stop date to December. This is because Fortis is in the process of raising funds through a share issue to IHH Healthcare. Proceeds from the share sale will be used for the acquisition of RHT Health assets.

 

On July 13, the Fortis Healthcare board had approved a Rs 40 billion offer from IHH Healthcare for 31 per cent stake in the hospital chain. Earlier this month Fortis shareholders approved the share sale transaction.