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Fortis Malar is planning to hive off its hospital infrastructure (including the building and other equipment in the hospital) into a separate entity or to sell it to one of the group's existing subsidiaries. The group may even float an SPV (special purpose vehicle) to buy out the hospital infrastructure.
According to Mr Krish Ramesh, Wholetime Director of Fortis Malar, the intention is to unlock the value of the brand and its growth potential. “This is to ensure flow of funds for our expansion projects and for increasing brand visibility. Currently, though we have some expansion plans, we have to go slow on it for want of funds,” explained Mr Ramesh.
Valuation
He said, the company, after its shareholder's approval, will appoint an independent agency of international repute to value the infrastructure “at the arm's length principle.” However, according to the company's valuations, the sale must fetch at least Rs 60 crore, and should be through within the next six months, he said.
In a notification to BSE on Friday, the company has said that its board of directors has approved the proposals to transfer or sell hospital infrastructure undertaking of the company on a going concern basis by way of a slump sale to any of its subsidiaries or associates; and to seek shareholders' approval by way of an ordinary resolution for transferring hospital infrastructure undertaking of the company through postal ballot.
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