Fortis Healthcare to raise Rs2,750 crore through securities market

Fortis Healthcare, already preparing for a takeover battle for Singapore-based hospital chain Parkway today said it would raise up to Rs2,750 crore through the securities market.

The company's board also approved a proposal to up the company's borrowing limit to Rs6,000 crore, but offered no explanation as to why the funds were being raised.

Announcing the decision taken at a meeting of the Board of Directors, the company said in a statement that it "approved the company's plan to raise up to Rs2,750 through issue of fresh securities."

Fortis holds a 25 per cent stake in Parkway Holdings, a Singapore based hospital chain and plans to build up a controlling stake in the company.

"The specific instrument, size and timing of the issue of securities will be decided by the Board based on the advice of merchant and investment bankers, book runners and lead manager," the statement said.

The company's tussle for control over the Singapore entity started with the announcement of Malaysian sovereign wealth fund Khazanah's launch of a partial cash offer worth $835 million to increase its stake in the Singapore-based firm to 51 per cent from 23 per cent.