Fortis seeks nod for rights issue; may acquire Wockhartdt

31 March 2009

Hospital chain Fortis Healthcare has sought government's approval to go ahead with a Rs1,000 crore rights issue, which would allow its existing foreign investors to subscribe to new shares and warrants, according to reports.

The move comes amidst unconfirmed reports that Fortis is likely to strike a deal for a 74 per cent equity stake in unlisted Wockhardt Hospitals for about Rs750 crore.

Pharmaceutical and biotechnology major Wockhardt, meanwhile refuted reports with regard to its financial figures and put at rest unfounded and earlier report which said Wockhardt's debt rose to 375 per cent of its equity.

Wockhardt, however, said it will undertake a corporate debt restructuring exercise, for which it has roped in ICICI Bank even as its promoter Habil Khorakiwala will quit the post of managing director, subject to shareholders' approval.

The company said it was looking at restructuring its certain businesses and subsidiaries, due to which it has delayed declaring the financial results of the fiscal year ended 31 December 2008.

''In view of the adverse market conditions, liquidity constraints and debt burden, the board decided to make a reference to corporate debt restructuring cell through ICICI Bank Ltd for financial restructuring of debts of the company through corporate debt restructuring mechanism," the company said in a filing with the Bombay Stock Exchange (BSE).