<article>Malaysia-headquartered <a href="https://www.dealstreetasia.com/?s=IHH Healthcare" target="_blank" rel="noopener">IHH Healthcare</a>, which has won the bid to acquire cash-strapped <a href="https://www.dealstreetasia.com/?s=Fortis Healthcare" target="_blank" rel="noopener">Fortis Healthcare</a>, is looking to merge its India business with Fortis&#8217; operations in the medium term, <a href="https://economictimes.indiatimes.com/industry/healthcare/biotech/healthcare/ihh-may-merge-existing-india-hospital-portfolio-with-fortis-healthcare/videoshow/65121832.cms" target="_blank" rel="noopener">reported</a> ET.</article>

Malaysia-headquartered <a href="https://www.dealstreetasia.com/?s=IHH Healthcare" target="_blank" rel="noopener">IHH Healthcare</a>, which has won the bid to acquire cash-strapped <a href="https://www.dealstreetasia.com/?s=Fortis Healthcare" target="_blank" rel="noopener">Fortis Healthcare</a>, is looking to merge its India business with Fortis&#8217; operations in the medium term, <a href="https://economictimes.indiatimes.com/industry/healthcare/biotech/healthcare/ihh-may-merge-existing-india-hospital-portfolio-with-fortis-healthcare/videoshow/65121832.cms" target="_blank" rel="noopener">reported</a> ET.
IHH has been operating in India since 2002, which is its fourth home market.
The merger plan will materialise only after it gets requisite approval from regulators and shareholders and closes the Fortis deal to ensure all India assets are housed under the same umbrella and there is no conflict in local markets, the report said quoting a source.
All stakeholders including lenders will be keen for a consolidation of the entire domestic portfolio, the source said.
Currently, IHH is present across five cities in India with more than 2,000 licensed beds across seven hospitals, according to its website. On the other hand, Fortis operates a network of 34 hospitals across the country and internationally with a capacity of over 4,600 beds and employs more than 2,600 doctors and 13,200 support staff who catered to 2.6 million patients in FY2018.
With Fortis acquisition, IHH will become the second-largest private healthcare services provider in India after Apollo Hospitals with a sharp rise in operational bed capacity. In terms of share of revenue, IHH’s exposure in India is expected to increase to 24 per cent from 6 per cent currently.
&#8220;Post completion of the Fortis acquisition, IHH will become a direct pan-India rival of Apollo Hospitals, IHH will explore either an exit/sale of its stake or buy out Apollo&#8217;s stake in the jointly run Apollo Gleneagles in Kolkata,&#8221; the report said quoting another source.
Apollo Gleneagles Hospital is a 50:50 joint venture between IHH&#8217;s subsidiary Parkway Pantai and India&#8217;s Apollo Hospitals formed in 2002. IHH also owns a 53.13 per cent stake in Continental Hospitals, a hospital with a 750-bed capacity, in Hyderabad, as per information on its website. In August 2015, it acquired a 73.4 per cent stake in Global Hospitals that runs hospitals in Chennai, Bangalore, Mumbai and Hyderabad.
On July 13, the Fortis’ board approved the sale of a 31.1 per cent stake in the company to the Malaysian healthcare firm for $582 million or Rs 170 per share. The IHH board, save for Rossana Annizah binti Ahmad Rashid, an independent non-executive director, too gave consent for the deal citing it as in the best interests of IHH.
The acquisition will give Fortis a valuation of about $1.29 billion. It will further trigger an open offer under the Indian takeover code, and enable IHH to increase its stake to a maximum of 57.1 per cent in the Indian company.
The Fortis open offer is expected to commence in August or September this year subject to certain conditions, including customary regulatory approvals including Competition Commission of India, Securities and Exchange Board of India and the Reserve Bank of India.
Fortis is also fighting a case with Japanese drugmaker Daiichi Sankyo that last week moved the Delhi High court seeking a stay on the acquisition by IHH, as it enforces Rs 3,500-crore arbitration award against Fortis’ erstwhile promoters, Malvinder Singh and Shivinder Singh.
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<a href="https://www.dealstreetasia.com/stories/malaysias-ihh-healthcare-wins-over-indias-fortis-with-1-1b-takeover-bid-101890/" target="_blank" rel="noopener">Malaysia’s IHH Healthcare wins over India’s Fortis with $1.1b takeover bid</a>
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The merger plan will materialise only after it gets requisite approval from regulators and shareholders and closes the Fortis deal to ensure all India assets are housed under the same umbrella and there is no conflict in local markets.

Post acquisition, Malaysia's IHH may merge its India operations with Fortis

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Post acquisition, Malaysia's IHH may merge its India operations with Fortis

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