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NCLT Chandigarh allows Fortis to withdraw 'arrangement and amalgamation' scheme

Fortis said NCLT approved the withdrawal of its scheme of "arrangement and amalgamation between the company, Fortis Malar Hospitals, SRL and their respective shareholders and creditors".

Published: 15th June 2018 11:57 PM  |   Last Updated: 16th June 2018 12:14 AM   |  A+A-

Fortis

A Fortis hospital building is pictured in Gurgaon. | Reuters

By IANS

MUMBAI: Fortis Healthcare (FHL) on Friday said that National Company Law Tribunal's (NCLT) Chandigarh Bench has approved the withdrawal of its scheme of "arrangement and amalgamation between the company, Fortis Malar Hospitals, SRL and their respective shareholders and creditors".

According to a BSE filing, the company said: "... the NCLT, Chandigarh Bench has today approved the withdrawal of the said Scheme".

On Wednesday, FHL informed the BSE in a filing, that its board has decided to withdraw the composite scheme, subject to NCLT approval.

FHL had cited delays in the process as one of the reasons to withdraw the scheme. It said the entire process was expected to be completed in 6-8 months, however, due to reasons beyond its control, the process has taken over 19 months and is still not complete.

"During this period of 19 months (a) healthcare sector has witnessed strong headwinds and (b) performance of diagnostics business has not been optimum," it said in the filing made on Wednesday.

"Given the challenges or headwinds in the sector and less than optimum performance of the diagnostics business during the period of delay, the demerger and a subsequent listing may result in value unlocking that may not be optimum for Fortis shareholders at this point of time."

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