Fortis Healthcare shares dive 13% on hospital business demerger
At close, Fortis Healthcare Ltd stock had cracked 13.29% or Rs 18.90 to end at Rs 123.35 on the National Stock Exchange (NSE).business Updated: Mar 28, 2018 15:52 IST
Shares of Fortis Healthcare tumbled over 13% on Wednesday, after the company said its board had approved the demerger of its hospitals business.
At close, Fortis Healthcare Ltd stock had cracked 13.29% or Rs 18.90 to end at Rs 123.35 on the National Stock Exchange (NSE).
Fortis Healthcare Ltd (FHL) said its board had approved demerger of its hospitals business, which will be acquired by Manipal Hospitals and TPG Capital, along with the sale of 20% stake in diagnostics chain SRL Ltd, in a Rs 3,900-crore deal.
In an announcement late Tuesday night, the healthcare chain said its board has given nod for the demerger of its hospital business into Manipal Hospital Enterprises Pvt Ltd.
“The board has also approved sale of its 20% stake in SRL Ltd to Manipal Hospitals. The resultant entity Manipal Hospitals will be a publicly traded company listed on NSE and BSE. The remaining FHL will be an investment holding company with 36.6 per cent stake in SRL,” the company said in a statement.