Fortis to demerge hospitals business into Manipal
Mumbai: Fortis Healthcare has announced plans to demerge its hospitals business (Fortis Hospitals) into Manipal Hospital Enterprises Private Limited (Manipal Hospitals).
According to a statement issued on late Tuesday night, the company said that the proposed transaction is subject to shareholders' approval, creditor's approval, applicable regulatory approvals (including Competition Commission of India, SEBI, stock exchanges and National Company Law Tribunal (NCLT)) and other customary conditions precedent.
The company's board has also approved sale of its 20 per cent stake in SRL Limited (SRL) to Manipal Hospitals.
"The resultant entity Manipal Hospitals will be a publicly traded company listed on NSE and BSE. The remaining FHL will be an investment holding company with 36.6 per cent stake in SRL," the statement said.
"As part of the proposed transaction, Dr. Ranjan Pai and TPG will invest RS 3,900 crore into Manipal Hospitals."
As per the statement, the funds will be utilised by Manipal Hospitals to "finance the acquisition of 50.9 per cent stake in SRL (20.0 per cent from FHL and 30.9 per cent from other investors for which discussions are currently underway)".
"In addition, the investment will support the proposed acquisition of hospital assets owned by RHT Health Trust ("RHT") and the growth of the hospitals and the diagnostics businesses," the statement said.
Accordingly, the combination of Manipal Hospitals and Fortis Hospitals will result in the creation of the largest provider of healthcare services in India by revenue with 41 hospitals in India and 4 hospitals overseas.
"The hospitals' complementary geographic footprints and combined clinical strengths will provide significant scale, revenue and cost synergies," the statement added.
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'Betrayal of people's mandate': Tejashwi on Nitish's Rajya Sabha entry
Patna (PTI): RJD leader Tejashwi Yadav on Thursday said Bihar Chief Minister Nitish Kumar's decision to enter the Rajya Sabha was a "betrayal" of the people's mandate.
Yadav, the leader of the opposition in the state assembly, alleged the BJP has always been opposed to Dalits and OBCs, and with Kumar leaving the CM's post, it will seek to implement its agenda in the socialist stronghold.
"The BJP has done a Maharashtra in Bihar," he said.
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"We have been saying from the very beginning that the BJP will not let Nitish Kumar remain the chief minister after the elections. This is exactly what has happened. This development is against the mandate of the people and amounts to a betrayal of it," he said.
Alleging that the BJP had "hijacked" Kumar, Yadav said that was the reason the veteran leader was now moving to the Rajya Sabha.
"BJP is against OBCs and Dalits. They never want a leader from these communities to occupy the top post. They want a chief minister who will function like a rubber stamp for the top BJP leadership," he alleged.
"I had said -- 'Nitish ji ko ghoda toh chadhaya hai dulha banake, lekin phera kisi aur ke saath dila raha hai' (They made Nitish Kumar mount the horse like a groom, but are getting someone else to take the wedding vows)," he added.
Kumar, the state's longest-serving chief minister, filed nomination papers for the Rajya Sabha polls, paving the way for the first BJP-led government in the state.
