Fortis Healthcare Ltd has struck a broad agreement to buy up to 74 per cent of unlisted Wockhardt Hospitals for about Rs 750 crore, a newspaper reported on Tuesday, citing unnamed sources
If the deal materialises, Fortis is likely to invest Rs 400 crore in the first phase for a 40 per cent equity stake and will raise it subsequently, the Economic Times said citing unidentified investment bankers. However, a formal deal is yet to be sealed, with both companies in the process of ironing out differences, including the issue of branding the hospital chain, the report added. The report said a Wockhardt spokesman has declined comment while a Fortis spokesperson said, "We are in the market. We cannot comment on market speculation or any individual deals." Private equity firms General Atlantic and Advent were also in the race, but Fortis was close to clinching the deal, the report added. Fortis' valuation of Wockhardt Hospitals, at over Rs 1000 crore, was substantially lower than that arrived at during the latter's aborted initial public offer last February, the report said. Wockhardt Hospitals, founded by the promoters of drug maker Wockhardt Ltd, had sought to divest 24 per cent stake to raise roughly Rs 800 crore through the public offer, but withdrew it on lack of demand. B.KARTHICK RESEARCH ANALYST WWW.KENCES1.BLOGSPOT.COM <http://www.kences1.blogspot.com/> --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
