Fortis Arm buys Religare Health Trust Trustee Manager for $15 million
Mayuresh Deshmukh / 27 Nov 2015
On 26th November, Fortis Healthcare Ltd. informed the Bombay Stock Exchange that one of their stepdown subsidiaries Stellant Capital Advisory Services Private Limited. (Stellant) entered into a share purchase agreement (SPA) with RGAM Investment Advisory Pvt. Ltd.and other shareholders.
On 26th November, Fortis Healthcare Ltd. informed the Bombay Stock Exchange that one of their stepdown subsidiaries Stellant Capital Advisory Services Private Limited. (Stellant) entered into a share purchase agreement (SPA) with RGAM Investment Advisory Pvt. Ltd.and other shareholders.
The agreement is to acquire 100 percent equity stake in Religare Health Trust Trustee Manager Pte. Ltd. The transaction is at a consideration of USD 14.9 million. It acts as trustee manager for Religare Health Trust (RHT).
Fortis Healthcare Ltd.(FHL) is a sponsor of RHT and holds 28 percent stake in it. A majority of assets are owned by RHT are operated by Fortis and its subsidiaries. Because of this, the acquisition will give a more focused approach to RHT strategically.
In terms of financials the total operating revenue of company for the year ending March 2015 stands at Rs.3965.86 crores an increase of 8.19 percent on yearly basis. The EBITDA of the company stands at Rs. 130.64 crores, an increase of 172.80 per cent and the EBITDA margin is 3.29 per cent as compared to 1.31 percent for the same period last year showing good operational efficiency but the net loss of the company is stand at Rs. 143.7 crores, a decrease of 217.27 percent. The substantial decrease in net profit is because of net losses from discontinuing operations for the last 2 years.
In RHT the Trustee-Manager periodically reviews its Distribution Policy. RHT TM's policy is to distribute at least 90 percent of RHT's Distributable Income.
The stock of the Fortis is trading at Rs.163.10 an increase of 1.40 percent from the previous close.
FHL is an India-based healthcare delivery service provider. The Company, through its subsidiaries, manages and operates a network of multispecialty hospitals and diagnostic centers. The Company establishes, maintains, operates, runs, manages or administers hospitals, medicare, healthcare, diagnostic, health aids and research centers. The Company also offers day care specialty facilities.
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