₹4,409 Crore Takeover Bid! IHH Healthcare Eyes Majority Control in Fortis Healthcare – Big Market Shakeup Ahead?

Author

Abhay Singh | Whalesbook News Team

Detailed Coverage:

IHH Healthcare Berhad, a global healthcare provider, and its wholly-owned indirect subsidiaries, Northern TK Venture and Parkway Pantai, have announced an open offer amounting to ₹4,409 crore. The offer is for the acquisition of 26.1 percent of the share capital of Fortis Healthcare Limited, a prominent Indian healthcare company. This transaction is being executed under the Takeover Code. Saraf and Partners advised Fortis Healthcare and Fortis Malar Hospital, with a transaction team led by Vaibhav Kakkar, Sahil Arora, and Debarpan Ghosh. S&R Associates advised IHH Healthcare Berhad and its subsidiaries on corporate and litigation matters. Following previous transactions, IHH's indirect shareholding in Fortis Healthcare Limited is 31.17%, and in Fortis Malar Hospitals Limited is 62.73%.

Impact: This open offer represents a significant consolidation move by IHH Healthcare in the Indian market. It suggests a strategic intent to deepen its control and influence over Fortis Healthcare's operations and future expansion. The market will closely monitor shareholder response and potential implications for Fortis Healthcare's strategy and valuation. This action could also signal increased M&A activity within India's burgeoning healthcare sector. Impact Rating: 8/10 Difficult Terms: Open Offer: A public announcement by an acquirer to buy shares from existing shareholders of a target company at a specified price. This is typically done when an acquirer seeks to gain control or a significant stake in a listed company. Takeover Code: A set of regulations that govern the acquisition of shares or control of a company, ensuring transparency and fair treatment for all shareholders, especially minority shareholders.