Fortis Healthcare to buy 86% in SRL for 842 cr; stock up

NEW DELHI: Fortis Healthcare (India) Ltd will buy 86% stake in Super Religare Laboratories (SRL) from its promoters at the same value at which private equity firm Avigo Partner is acquiring a minority stake. This could cost the hospital chain around Rs 842 crore.

At 9:45 am, shares of Fortis Healthcare were trading 1.61% up at Rs 160.70 on the Bombay Stock Exchange.

On Monday, Avigo Capital Partners said it will acquire 9.27% equity in SRL for Rs 100 crore ahead of the proposed public issue of the country’s largest pathology chain. According to ET calculations, Avigo will subscribe to around 53 lakh shares of SRL at Rs 189 a share. After the initial public offer, Avigo's stake in SRL will drop to 6.6%.

If Fortis Healthcare (India) also pays out Rs 189 a share, it will have to shell out around Rs 842 crore to its promoters, the billionaire brothers Malvinder and Shivinder Singh to buy their 86% stake in SRL. Last week, Fortis Healthcare (India) board had given an in-principal approval to buy the stake. On Tuesday, the company’s board gave the final nod to go ahead with the deal.