Fortis Healthcare approves demerger of diagnostics business

Gurgaon, Aug 19 (IANS) Fortis Healthcare Limited on Friday approved the demerger of its diagnostics business, including its majority-owned subsidiary SRL Limited, into another majority-owned subsidiary -- Fortis Malar Hospitals Limited.

The demerger will be followed by SRL being merged with Fortis Malar Hospitals, the company said in a statement.

"As a result of the new groupings, both the hospitals and diagnostic businesses will benefit from greater clarity, a stronger focus and an independent growth trajectory," said Malvinder Singh, Executive Chairman of Fortis Healthcare.

Fortis Healthcare shall pay an amount of Rs 43 crore as lump sum consideration to Fortis Malar towards acquisition of the hospital business of Fortis Malar.

The name of Fortis Malar will subsequently be changed to SRL Limited and this company is proposed to be listed on the National Stock Exchange of India Limited (NSE), in addition to its current listing on the Bombay Stock Exchange (BSE).