CHENNAI: Chennai-based Fortis Malar Hospitals Limited will sell its business operations of 140-bed multi-speciality hospital to MGM Healthcare in a deal valued at Rs 45.5 crore. Fortis Malar Hospitals, a subsidiary of Fortis Healthcare, has signed a definitive agreement for sale its business operations of its hospital situated at Gandhi Nagar, Adyar in Chennai, it said in exchange filings on Friday.
The OPD and radio diagnostics business operations related to the Malar Hospital, including the land and building and the adjacent land parcels are also being divested by two wholly-owned subsidiaries of Fortis Healthcare Limited – Fortis Health Management Limited (FHML) and Hospitalia Eastern Private Limited (HEPL) to MGM.
Fortis Healthcare owns a 62.7% equity stake in the Malar Hospitals.The transaction will be an all-cash deal and is expected to be completed by the end of January 2024. The divestment is a part of Fortis Healthcare’s portfolio rationalisation in order to focus on deepening its presence in select geographic clusters where it has a sizable presence, it said. Fortis Healthcare has a significant presence in the Delhi-NCR region and Karnataka, among other areas.
Currently, the company operates 27 healthcare facilities and its network comprises approximately 4,500 beds. Earlier in June 2023, Fortis Healthcare sold its hospital business at Vadapalani in Chennai to Sri Kauvery Medical Care for Rs 152 crore, in an all-cash deal. Malar Hospital has been facing certain legacy issues. Daljit Singh, Non-Executive Chairman, Fortis Malar Hospitals said, “Certain legacy issues have persisted for long and have impacted the performance of the facility, presenting challenges in clinical hiring and retention.”