Fortis to hive off non-core biz, move aimed at unlocking value

Mumbai: Fortis Healthcare plans to raise $300 million by spinning off its non-core business into a separate company, which will then be listed on the Singapore Stock Exchange, a report in The Economic Times newspaper said.

Hospitals operator Fortis, controlled by billionare brothers Malvinder and Shivinder Singh, expects the restructuring to be completed by the middle of next month, the newspaper said on Friday, citing two people familiar with the matter. The initial public offering (IPO) is likely to hit the market in May or June this year, the report said.

[caption id="attachment_202260" align="alignleft" width="380" caption="According to a newspaper report Fortis IPO is likely to hit the market in May or June"][/caption]

The restructuring, aimed at unlocking value from non-core business that primarily includes diagnostics operations, would provide funds for the company to cut its debt and fund growth, the report added. The company has a current debt of around 40 billion rupees, the report said. Part of the IPO proceeds may be kept aside for funding future acquisitions, the report said citing one of the sources.

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Reuters