Fortis shareholders approve stake sale to IHH Healthcare

SHAREHOLDERS of India's Fortis Healthcare have approved a subscription of shares by Malaysia's IHH Healthcare, fulfilling a key condition for the acquirer to eventually aim for a majority stake.

In a regulatory filing on Wednesday, IHH said that Fortis shareholders approved an increase in the authorised share capital of the company and IHH's subscription of a 31.1 per cent stake in the company's enlarged share capital for about 40 billion rupees (S$789 million) in a preferential allotment.

IHH has also agreed to make an open offer to acquire an additional 26 per cent for about 33.5 billion rupees. In total, IHH could spend more than 73.5 billion rupees on the acquisition.

IHH announced the update during a trading halt of its stock. Trading resumed with IHH at S$1.83, unchanged on the day.