Fortis Healthcare has accepted an investment offer from Malaysias IHH Healthcare to invest 4,000 crores ($584.11 million) in it by way of preferential allotment at Rs 170 per share.
This acceptance has put an end on a months-long bidding war for taking control of the firm.
The offer is at a 19.5 per cent premium to Fortis’ closing price on Thursday.
Northern TK Venture Pte Ltd, Singapore, a unit of IHH will issue 235.3 million new Fortis shares through a preferential allotment, which is tentatively 31 per cent of the companys total voting equity share capital.
The deal is likely to be completed in the fourth quarter and will not have any material effect on profits for this fiscal year, said IHH in a separate statement.
Fortis takeover is considered as a significant development in the healthcare industry and firms like Manipal Health Enterprises, TPG Capital, KKR and Co-backed Radiant Life Care Pvt Ltd had also bid for the stake in Fortis.