Fortis Healthcare’s hospital division is now merged with Manipal Hospitals. It has also sold its majority stake in its SRL Diagnostics unit to the same group.
The transaction will lead to the listing of Manipal Hospitals as the largest hospital services provider in the country by revenue. The Fortis HealthcareBSE -7.55 % board approved the transaction on Tuesday.
Ranjan Pai will become the largest investor with a 37.9% stake in post-merger Manipal Hospital and TPG will follow with 20%. Pai is the principal shareholder in Manipal Hospitals while TPG is an investor in the company.
The erstwhile promoters of Fortis Healthcare, Malvinder, and Shivinder Singh, will have a 0.3% stake, down from about 0.8% now. The sale came too late for them to be able to retain control of the company, having failed to redeem pledged shares amid an arbitration award that went against them in the sale of Ranbaxy to Daiichi Sankyo.