Healthcare & Life Sciences
VedaCorp advised IHH-backed Fortis Healthcare on the divestment of Fortis Malar Hospital to MGM Healthcare
About
Fortis Healthcare Limited
Fortis Healthcare Limited, is a leading integrated healthcare delivery service provider in India. The healthcare verticals of the group primarily comprise hospitals, diagnostics, and daycare specialty facilities. Currently, the group operates 27 healthcare facilities (including O&M facilities). The Group’s network comprises approximately 4,500 operational beds.
MGM Healthcare Private Limited
MGM Healthcare Private Limited, is a Chennai based healthcare services players operating quaternary care hospitals and medical colleges in the state of Tamil Nadu over the last two decades. With this acquisition, the Group will operate with a network of 3 hospitals comprising of 800+ beds in Chennai.
Background
We are pleased to announce that certain subsidiaries of our client, Fortis Healthcare Limited (“Fortis”), have signed definitive agreements for sale of the business operations along with the land and building pertaining to Fortis Malar Hospital situated at Gandhi Nagar, Adyar, Chennai (“Fortis Malar”) to MGM Healthcare Private Limited (“MGM”). This is our 2nd consecutive transaction for Fortis Group within the last 6 months in divesting their non-core assets aggregating to INR 280 crores.
VedaCorp was successful in generating significant interest from multiple healthcare operators through competitive bid process paving the way for a successful outcome of the Transaction.
Veda Corporate Advisors (“VedaCorp”) was the financial advisor to Fortis on this transaction. The transaction involved VedaCorp working closely with the Fortis team and providing comprehensive transaction advisory services covering identification of prospective investors, strategic positioning of the opportunity, valuation through price discovery process, assistance in due diligence, negotiation and finalization of definitive agreements.
This marks VedaCorp’s 11th transaction in healthcare & life sciences space in the last 1 year.