Fortis Healthcare (India) Ltd on Thursday said it will acquire 86 per cent stake in Super Religare Laboratories (SRL) for an amount that is yet to be decided. The move is aimed at positioning Fortis as an integrated healthcare services company.

The decision to acquire SRL's stake was approved by Fortis' board of directors at its meeting held today. Fortis spokesperson said that the deal size will be determined based on the valuation by independent evaluator.

New structure

Fortis said SRL will go ahead with the proposed initial public offering. “In the new structure, Fortis Healthcare will own 86 per cent and balance by other existing investors. Post IPO, the same will be significantly diluted,” Fortis said in response to a question sent by e-mail.

In February, SRL filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India (SEBI) for a public issue of 28 million equity shares (face value Rs 10 each) for cash at a premium to be determined at the time of bid opening. The document is awaiting comments from SEBI.

The proposed deal gives Fortis access to the diagnostic services market in India. SRL offers diagnostic testing, preventive care testing and clinical research trial testing.

New verticals

Explaining the rationale for the move Fortis Healthcare said, “Fortis has grown to become a pan-India company with the clear objective of being an integrated healthcare player.”

“Besides the stated target of at least 25 hospitals in India's tier-II and tier-III towns over the next two years, Fortis is adding new verticals focused on medical specialties,” it added. Fortis' share price was up 2 per cent to close at Rs 161.75 on the BSE on Wednesday.

In addition to the two recently launched verticals — diabetes and metabolic diseases and stem cell therapy centres — the board at its meeting on Thursday also approved the setting up of standalone dialysis centres.

Mr Shivinder Mohan Singh, Managing Director, Fortis Healthcare (India) Ltd. said, “We see great benefit in augmenting the Fortis presence with new speciality-based verticals. The addition of diagnostics and retail dialysis will serve to enhance the quality of care to our customers.”

tkt@thehindu.co.in

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