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Fortis closes acquisition of RHT Health Trust's assets

Fortis Healthcare Ltd. completed the acquisition of assets of RHT Health Trust for 46.50 billion Indian rupees.

Fortis, the controlling shareholder of RHT, said in a regulatory filing that it bought RHT Health's entire asset portfolio, all of its Indian subsidiaries and the Singapore-listed entity's 49% stake in Fortis Hospotel Ltd.

In 2017, Fortis had offered to buy RHT Health's assets but the deal was formalized in 2018.

Following the completion of the deal, International Hospital Ltd., Fortis Health Management Ltd., Escorts Heart and Super Speciality Hospital Ltd., Hospitalia Eastern Private Ltd. and Fortis Hospotel became units of Fortis Healthcare.

The Indian hospital chain operator said the transaction, approved by about 99% of its shareholders, would create value by saving significant clinical establishment fees the company pays.

Fortis expects the acquisition to improve its EBITDA and cash flows while also leading to interest savings.

The acquisition comes amid Fortis' plan to sell a certain stake in the company to Malaysia's IHH Healthcare Bhd., which has been put on hold by the Indian top court following a legal intervention by Daiichi Sankyo Co. Ltd.

As of Jan. 15, US$1 was equivalent to 71.04 Indian rupees.