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Corporate Jun 12, 2013

Fortis to sell stake in Vietnam asset for Rs 465 cr, debt ratio to fall

Fortis Healthcare has entered into a pact to sell its entire stake in Vietnam-based hospital chain Fortis Hoan My Medical Corporation to Viva Holdings Vietnam for $80 million (over Rs 465 crore).

In 2011, Fortis Healthcare International had acquired 65 percent stake in Hoan My Medical Corporation for $64 million.

Malvinder Singh, Chairman of Fortis

Malvinder Singh, Chairman of Fortis

"In keeping with our current priorities in allocation of resources and further strengthening our balance sheet we have decided to accept this unsolicited offer from Viva Holdings," Fortis Group CEO Vishal Bali said in a statement on Tuesday.

"The offer price provides a premium to the purchase price paid by Fortis for the acquisition of Hoan My," the statement said without revealing the actual profit to be cashed in from the transaction.

The healthcare major has entered into a pact with Viva Holdings Vietnam, a wholly-owned subsidiary of Chandler Holdings Ltd to sell its stake in Fortis Hoan My Medical Corporation Vietnam, the statement said.

Established in 1997, Hoan My Medical Corporation is one of the Vietnam's largest private healthcare provider groups, with 700 beds across five hospitals.

"The transaction is EPS accretive to Fortis Healthcare and post this divestment the net debt to equity ratio of the company is expected to go down," Bali added.

Shares of Fortis Healthcare on Tuesday closed at Rs 90.05 on the BSE, down 0.61 percent from its previous close.


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