Fortis in talks to sell 15 - 20 % stake to Carlyle and TPG Capital: report
29 March 2012
Fortis Healthcare India is in talks with private equity firms Carlyle Group and TPG Capital India to sell a 15-20 per cent stake in itself, the Mint yesterday reported, citing sources close to the development.
The promoters of the second-largest hospital chain in India - Malvinder and Shivinder Singh - may sell an additional 6.5 per cent stake through a stock auction.
Under the deal that is likely to be announced in the next two weeks, Fortis plans to raise around $250 million through a combination of equity and convertible debt instruments from the PE firms, the paper said.
The move will help the Singh brothers, who hold 81.48 per cent of the company, to reduce their stake in order to abide by the stock market regulatior, where the public should hold at least 25 per cent of any listed company.
After the sale, the promoters' holding in Fortis will come down to below 60 per cent.
According to the paper, the PE firms will buy the stake at around Rs110 - Rs120 a share. Fortis Healthcare yesterday closed at Rs100.05 at the Bombay Stock Exchange.