IHH becomes controlling shareholder in Fortis Healthcare

New Delhi/Mumbai, Nov 13 (IANS) After months of deliberations, Malaysia's IHH Healthcare Berhad on Tuesday finally became the controlling shareholder of Fortis Healthcare with a 31.1 per cent stake in the company.

Fortis' Board approved the allotment of over 23 crore units of equity shares through preferential issue to Northern TK Venture Pte Ltd, a wholly owned indirect subsidiary of IHH Healthcare at Rs 170 per share of Rs 10 face value.

"With this preferential issue, IHH has, through NTK infused approximately Rs 4,000 crore of primary capital into the company and NTK has become the controlling shareholder in the company with 31.1 per cent stake on the expanded capital," Fortis said in a statement.

Consequently, IHH Healthcare's nominees have joined Fortis' board.

The new board would have Tan See Leng, MD and CEO of IHH Healthcare, along with other top IHH officials, Low Soon Teck, Chan Boon Kheng and Bhagat Chintamani Aniruddha, all as additional directors.

The reconstituted Board has a total of seven members with three current directors and four additional directors nominated by IHH healthcare.

The transfer of shares comes after the IHH Healthcare in July won the bid to invest Rs 4,000 crore.

Commenting on the transition, Ravi Rajagopal, Chairman Board of Directors, Fortis Healthcare said: "The reconstituted board will actively provide strategic direction and vision to the company and will ensure that the company's focus on clinical excellence, clinical outcomes, patient care and business results remains paramount."

Newly appointed additional director Tan See Leng said: "The acquisition of a controlling stake in Fortis Healthcare, one of the leading healthcare service providers in India, represents a transformational investment for IHH and demonstrates our commitment to invest considerable resources to expand and consolidate our footprint in India."

On Tuesday, shares of shares of Fortis Healthcare on the BSE closed at Rs 141.80 per share, up Rs 1.95 or 1.39 per cent from the previous close.