With a market value of about $1.3 billion, Fortis Healthcare is about to raise $790m.
On a search for a cash injection of $790 million, as part of Fortis Healthcare’s billionaire founders’ says that they will sell their stake in India’s second-largest private hospital chain, as president Daljit Singh has said.
While talking in an interview on Thursday Daljit Singh shared that Malvinder and Shivinder Singh have been in talks with private equity firms for the past year to sell their 34% stake in Fortis to pay down debt at their holding company.
Daljit Singh added that the deal could also bring fresh capital for Fortis that would be used to partly finance the acquisition of its Singapore-based trust, announced in November.
On the other side, Fortis is also exploring other structures for a capital infusion, which could result in dilution for existing shareholders.
A spokesman for the Singhs’ holding company, RHC Holding said that the brothers are complying with a court order to not sell their stakes in Fortis as part of a dispute with Japan’s Daiichi Sankyo and aren’t in talks with PE firms on a stake sale.
On this matter, Singh added, “In order to take care of the group’s problems we need to infuse money into the organization — the promoters need to get money.”
“There have been discussions with prospective partners to invest either a primary infusion or to buy out the shares of the promoters in a manner that makes sense for the entire group,” he further added.
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