India: Fortis proposes to buy out assets of Singapore-based RHT Health for $711m

Visual from Fortis website

Singapore-based RHT Health Trust Manager Pte. Ltd has entered into term sheet with its controlling shareholder Fortis Healthcare Ltd, to sell its entire portfolio of assets for Rs 4,650 crore ($711 million).

In a filing to the stock exchanges, RHT Health Trust Manager Pte Ltd said it has received a proposal from Fortis to acquire all the sale securities held by RHT Singapore’s wholly-owned subsidiaries, Fortis Global Healthcare Infrastructure Pte Ltd and RHT Healthtrust Services Pte Ltd.

Fortis has an indirect interest of around 29.76 per cent  in RHT.

Through this transaction, the Singapore-based firm will sell its Indian subsidiaries, 49 per cent stake in Fortis Hospitel Ltd, and its entire asset portfolio including holdings in 12 clinical establishments, four greenfield projects and two operating hospitals in India.

The exclusivity period will be valid for two months.

The net proceeds are intended to be substantially distributed to unit holders, said RHT. The proposed value of the deal also includes Rs 1152 crore of debt, and the proceeds from the transaction would also be used to pay off this debt.

“With this unwinding of the current structure, it would make it easier for the investors and other stake holders to better understand the company’s business and financial performance,” said Fortis in its filing to the stock exchanges.

The transaction would be funded with a combination of equity, quasi-equity and/or debt, said Fortis. The company has an enabling resolution in place to raise capital for up to Rs 5,000 crore and has been in talks with various financial and strategic investors to raise funds.

Cash-strapped Fortis, promoted by brothers Shivinder and Malvinder Singh, has been aggressively seeking buyers for its various businesses.

Earlier this year, it was reported that Asia’s largest private hospital operator IHH Healthcare Bhd was keen on acquiring stake in Fortis, however the Malaysian firm denied the reports saying it was not conducting any due diligence in India.

The Singh brothers have also been embroiled in a legal battle with Japan’s Daiichi Sankyo Ltd, which has been blocking the promoters’ plans to sell stake in Fortis, after a bitter dispute.

Last month, the Supreme Court refused to allow bankers to sell Fortis shares to recover their money. The brothers have pledged shares worth approximately Rs 1,582.75 crore with Yes Bank Ltd, Rs 390 crore with Axis Bank Ltd, Rs 413 crore with ECL Finance Ltd and Rs5 5 crore with RBL Bank Ltd.

Also Read:

India’s Fortis Healthcare considering buyout of Singapore’s RHT Health Trust

Singapore Reporter/s

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.