RHT's India deal raises questions

Its board should be asked to provide more clarity about the transaction which merits greater scrutiny by unitholders

Published Thu, Feb 6, 2014 · 10:00 PM

IT WAS probably good news to unitholders when Religare Health Trust (RHT) announced its proposed acquisition of a clinical facility known as Mohali Clinical Establishment in Punjab, India, signalling further room for growth. What isn't so favourable is that it will soon have to vote on other transactions linked to this deal, even as some questions are left unanswered.

In a regulatory filing on Feb 2, RHT said it had agreed to acquire Mohali Clinical Establishment from Radha Soami Satsang Beas (RSSB) for $55.1 million.

It also agreed to enter into separate agreements, which are interested person transactions (IPTs), with its sponsor Fortis Healthcare for the purchase of related equipment and services.

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