Fortis scraps plan to sell stake in RHT and RHTTM

17 June 2019 (Last Updated June 18th, 2019 08:09)

India-based hospital chain Fortis Healthcare has decided to scrap the bidding and search process for a potential sale of its interest in RHT Health Trust (RHT) and RHT Health Trust Manager (RHTTM).

Fortis scraps plan to sell stake in RHT and RHTTM
Fortis has a total stake of 27.82% in RHT. Credit: Martha Dominguez de Gouveia on Unsplash

India-based hospital chain Fortis Healthcare has decided to scrap the bidding and search process for a potential sale of its interest in RHT Health Trust (RHT) and RHT Health Trust Manager (RHTTM).

The company was reportedly in negotiations with potential buyers to divest its stake in Singapore-listed Religare Health Trust (RHT) since April this year.

Fortis was quoted by the Bombay Stock Exchange as stating: “No firm proposal which is commercially viable was received and no agreement (binding or non-binding) has been reached with any of these parties in connection with the potential transactions or any other transaction involving RHT and RHTTM.

“Pursuant to an open invitation to interested parties to submit proposals in connection with the potential transactions, a process to evaluate proposals was undertaken with professional advisers, and preliminary discussions were held with certain third parties concerning the potential transactions.”

Fortis further stated: “Since the bidding process to explore the potential transaction was inconclusive, it was decided to close the bidding and search process”.

Fortis has a total stake of 27.82% in RHT, of which 25.14% is held by Fortis Healthcare International Ltd and 2.68% by the trustee-manager RHTTM, which is a Stellant unit. Fortis Healthcare directly or indirectly owns FHIL and Stellant..

Fortis Healthcare bought RHT’s assets in January 2019 after IHH injected money into Fortis in December 2018.

As a result, International Hospital, Fortis Health Management, Escorts Heart and Super Speciality Hospital, Hospitalia Eastern and Fortis Hospotel became subsidiaries of the company.