The Competition Commission of India (CCI) has approved IHH Healthcare ’s purchase of a controlling stake in Fortis Healthcare , a leading hospital chain in the country.

Two people familiar with the development told The Economic Times that an announcement on this deal will be made soon.

As per the transaction, the Malaysia-based IHH Healthcare will acquire 31% stake at Rs 170 per share totaling Rs400m ($5.4m).

Fortis Healthcare will issue new equity shares to IHH Healthcare, which has given a refinance facility of Rs250m ($3.38m).

In July, the board of directors of Fortis Healthcare gave unanimous approval to a binding investment proposal from IHH, which outbid a consortium of Manipal Health Enterprises and TPG Capital.

This August, Fortis shareholders gave approval to the deal, thereby bringing an end to the prolonged uncertainty at the hospital chain, which not only had liquidity issues but also of governance.

The proceeds injected through the deal will help Fortis meet its cash requirements for the long and short terms including purchasing assets from Singapore-based Religare Health Trust and exiting private equity investors in SRL, the diagnostics unit of Fortis.

Fortis fell into a crisis earlier this year as it was disclosed that its promoters, Malvinder and Shivinder Singh, allegedly took out Rs50m from through inter-corporate deposits, reported

IHH Healthcare is a large healthcare group with operations in nine countries. It has around 10,000 beds across 49 hospitals.

It has a range of healthcare services, right from clinics, hospitals to quaternary care.

In India, it operates a network of seven hospitals and three medical centres. These facilities are located in Chennai, Bangalore, Hyderabad, Kolkata and Mumbai.