Fortis proposes to buy RHT Health Trust's entire asset portfolio for S$966m

FORTIS Healthcare Limited, the controlling shareholder of RHT Health Trust, is proposing to acquire the trust's entire asset portfolio for 46.5 billion Indian rupees (S$965.95 million).

In an exchange filing on Wed morning, RHT Health Trust Manager Pte Ltd said it has received a proposal from Fortis to acquire all the sale securities held by RHT Singapore's wholly-owned subsidiaries, Fortis Global Healthcare Infrastructure Pte Ltd and RHT Healthtrust Services Pte Ltd.

This would result in the sale of all of RHT's Indian subsidiaries, its 49 per cent stake in Fortis Hospotel Ltd, and its entire asset portfolio including interests in 12 clinical establishments, four greenfield clinical establishments and two operating hospitals in India.

Both have entered into a term sheet to negotiate exclusively for 60 days.

Fortis, a large integrated healthcare delivery service provider in India, holds an indirect interest of about 29.76 per cent of units in RHT.

The consideration, which would be adjusted based on changes in net current assets of RHT's Indian subsidiaries among others, would be fully satisfied in cash. It would be funded with a combination of equity, quasi-equity and/or debt, said Fortis.

The net proceeds are intended to be substantially distributed to unitholders, said the trustee-manager.

RHT Health Trust Manager has appointed Merrill Lynch (Singapore) as its exclusive financial adviser to advise on the proposed disposal.

RHT Health Trust on Wed also reported a 15.5 per cent fall in distribution per unit to 1.14 Singapore cents for the second quarter, down from 1.35 cents in the year-ago period.

Total revenue rose 4.9 per cent to S$23.95 million on the annual contractual increase in the base fee payable by the operator Fortis Healthcare Limited.

Its total distributable income, however, fell 15.2 per cent to S$9.67 million due to refinancing related costs and increased interest expenses.

The trustee-manager has not declared a distribution for the six months ended Sept 30, as it has not received certain service fees and interest income on the CCDs from the relevant Fortis entities; Fortis is proposing for these to be paid alongside the purchase consideration.