Fortis Healthcare gains over 1% on BSE on acquisition news

MUMBAI: Buoyed by the news of Fortis buying Hong-Kong based Quality Healthcare Asia, the company share price on Monday hit a month's high before shedding some gains to close 1.29 per cent higher at Rs 173.30 at the BSE.

Shares of the healthcare major had jumped by 3.41 per cent to touch a four-week high of Rs 176.95 in the morning trade on the BSE, bolstered by the acquisition plan of its arm Fortis Global Healthcare.

Yesterday, Fortis Global Healthcare, which is a special purpose vehicle promoted by Fortis Healthcare's to build a pan-Asian healthcare business, had announced the acquisition of Hong-Kong based Quality Healthcare Asia (QHA) for Rs 882 crore.

As a part of the agreement between Fortis Global Healthcare and QHA, which was reached on October 8, the former will acquire five subsidiaries of the latter, excluding the elderly healthcare businesses of QHA.

On the National Stock Exchange, Fortis scrip gained by 1.17 per cent to close at Rs 173.30. On the volume front, over 18.42 lakh shares of the company were traded on the bourses.

Market analysts said the scrip saw a smart move, following the announcement of QHA acquisition. However, in the latter half of the trade investors preferred to book profits amid a firm broader market, leading to the company share losing of the early gains.

Meanwhile, the BSE Sensex finished the day at 20,339.89, up 89.63 points from the previous close.