NEW DELHI: Malaysia's IHH Healthcare Bhd has become the controlling shareholder in India's Fortis Healthcare Ltd and will have four seats on the reconstituted board of directors.
The Indian hospital chain said its board yesterday approved the allotment of 235,294,117 equity shares through preferential issue to Northern TK Venture Pte Ltd (NTK), a wholly-owned indirect subsidiary of IHH Healthcare Bhd, at 170 rupees (US$2.34) per share of 10-rupee face value.
IHH infused about 40 billion rupees of primary capital into Fortis and now has a 31.1% stake.
Cash-strapped Fortis had accepted an investment proposal from IHH in July after the Malaysian company won a bidding contest.
“I am pleased to announce the completion of the investment by IHH in Fortis. With this, I welcome the new IHH nominated members on the board,” Ravi Rajagopal, chairman of Fortis Healthcare, said in a statement.
The new board will have seven members, comprising three current directors and four additional directors nominated by IHH.
The IHH nominees are its managing director and CEO Tan See Leng, IHH group chief financial officer Low Soon Teck, group head for strategic planning and business development Chan Boon Kheng and Bhagat Chintamani Aniruddha, an IHH board member and executive director for the healthcare sector of Khazanah's investment division.
Fortis has 43 healthcare facilities in India and elsewhere with a capacity of 9,000 beds and 378 diagnostic centres. — Bernama