The Hindu Business Line : Fortis completes acquisition of Chennai’s Malar Hospitals

Corporate - Mergers & Acquisitions
Industry & Economy - Medical Institutions & Hospitals
Fortis completes acquisition of Chennai’s Malar Hospitals

Oscar Investment also picks up stake

Our Bureau

New Delhi, Feb 19 International Hospital Ltd a wholly owned subsidiary of Fortis Healthcare Ltd, along with Oscar Investments Ltd (OIL) has acquired 62.17 per cent equity of the Chennai-based Malar Hospitals Ltd (MHL) for Rs 34.68 crore.

International Hospital along with Oscar Investments had earlier acquired 20.97 per cent stake of the 180-bed hospital by way of preferential allotment in October 2007.

Post the open offer made to the existing shareholders and share purchase agreement, the total equity share capital held by International Hospital is 48.83 per cent while Oscar Investments’ holding stands at 13.34 per cent.

The board of directors of MHL has also approved the appointment of Mr Shivinder Mohan Singh as the Non-executive Chairman of the company while Dr Nithya Rammurthy will continue as a member of the board.

Mr Shivinder Mohan Singh, CEO and Managing Director, Fortis Healthcare, said, “The completion of the acquisition process is an important milestone in our national roll out plans. Malar Hospitals is well established in Chennai, and enjoys strong brand equity in the South, which is an advantage, as it is our first entry into the region.

“We are proud to welcome the hospital and its employees to our group and look to upgrade the facilities by adding key super specialties to it. We would also look at expanding footprint in the South soon, going forward.”

Dr Nithya Ramamurthy, Director, Malar Hospitals Ltd, said, “Fortis is known for the quality of its clinical and patient care. We are proud that Fortis will now own and manage this hospital.

“The patients of Malar and the Southern region will gain immensely from the enhanced care which can now be assured.”

Fortis has a network of 13 hospitals primarily in North India and 16 satellite and heart centres, including one in Afghanistan.