Fortis Group completes acquisition of Malar Hospitals (Chennai)

International Hospital Limited (IHL), a wholly owned subsidiary of Fortis Healthcare Limited, along with Oscar Investments Limited (OIL) has completed the acquisition of 62.17 per cent of the equity share capital of Malar Hospitals Limited (MHL), Chennai, for a consideration of INR 34.68 crore. The acquisition has paved the way for Fortis Healthcare, which is a major healthcare provider, to enter Southern India. Malar Hospitals, with 180 beds, is a multi-speciality hospital focusing on comprehensive medical care in the areas of Gastroenterology, Neurology, Gynaecology, Paediatrics, Diabetics, Orthopaedics and Nephrology.  IHL along with OIL had earlier acquired 20.97% stake by way of preferential allotment in October 2007. Post the open offer made to the existing shareholders and Share Purchase agreement with the Promoters, the total equity share capital held by IHL is 48.83% while OIL’s holding stands at 13.34%. The board of directors of MHL has also approved the appointment of Shivinder Mohan Singh as the Non-utive Chairman of the Company while Dr. Nithya Rammurthy will continue as a member of the board.                                              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 Hospital 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.” “We are very pleased to have Dr. Nithya Ramamurthy continuing with us on the board, and look forward to her business insight and considerable experience in the South contributing in growing business in the region,” he added. 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.” Malar Hospital was promoted in 1989 by a group of doctors headed by late Dr. S. Ramamurthy and the hospital was set up in 1992. Dr. Ramamurthy was a well-known General Physician and Sonologist.  After his demise, his wife Dr. Nithiya Ramamurthy had taken charge of the hospital and the Company. The hospital, located in the posh Gandhi Nagar in Adyar, Chennai, is centrally located and is easily accessible.


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