Gurugram-based Fortis Healthcare Ltd has proposed acquisition of all the securities of Singapore-listed RHT Health Trust (RHT) for an enterprise value of around ₹4,650 crore.

Fortis, on Wednesday, announced that its board of directors had approved a major restructuring initiative aimed at consolidating the entire Indian asset portfolio (including 12 clinical establishments, four greenfield clinical establishments and two operating hospitals) of RHT into Fortis.

“Fortis and the trustee-manager of RHT have today signed a term sheet and entered into an exclusivity arrangement proposing the acquisition of all the securities of RHT’s entities in India holding (directly or indirectly) clinical establishments and businesses via a purchase of securities for an enterprise value of approximately ₹4,650 crore. This includes ₹1,152 crore of debt as on date which will be used to repay RHT’s debt. RHT currently has 807.8 million units outstanding,” a company release stated.

It is expected that a substantial part of the net proceeds (after repaying debt) received by RHT will be distributed to its unit-holders, including Fortis, thereby, reducing the net investment consideration that the company will incur, it added.

RHT is a registered business trust listed on the Main Board of the Singapore Exchange Securities Trading Ltd. Fortis is a controlling unit holder with an indirect interest of 29.76 per cent in RHT. The proceeds raised from the listing of RHT in October 2012 were used by Fortis to de-leverage its balance sheet.

“This restructuring is a significant initiative and will integrate RHT’s entire India-based asset portfolio into Fortis, while also improving the overall financial health of the business,” according to Bhavdeep Singh, CEO, Fortis Healthcare.

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