Fortis set to buy Singapore-based RHT Health Trust for $711 mn

Fortis Healthcare Ltd, India's second-largest private hospital chain by market value, has offered to buy all assets of its Singapore-listed RHT Health Trust for Rs4,650 crore ($711 million) as it seeks to restructure RHT's business.

Fortis currently owns 29.76 per cent stake in RHT. Under the proposal, Fortis will acquire all of RHT's Indian subsidiaries, a 49-per cent interest in Fortis Hospotel Ltd, and the entire asset portfolio of RHT, which includes clinics and hospitals in India, according to a filing with the Singapore Exchange Wednesday.

With this, Fortis will acquire two hospitals and 12 clinical establishments that are currently operated by RHT Health subsidiaries International Hospital Limited, Fortis Health Management, Fortis Hospotel, Escorts Hearth and Super Speciality Hospital, and Hospitalia Eastern Pvt Ltd. These entities will become wholly owned subsidiaries of Fortis.

This comes at a time when Fortis' promoters are trying to sell a part of their stake. A number of private equity partners have been in the race for a stake in Fortis Hospitals.

The proposed transaction would enhance value for Fortis's stakeholders, the Indian hospital operator said in a separate statement.

RHT jumped as much as 19 per cent in Singapore trading today, the most since it was listed five years ago, with trading volume at more than 1,000 per cent of the three-month daily average, according to data compiled by Bloomberg.

The two parties agreed on a 60-day exclusivity period for the negotiations. RHT's trustee-manager appointed Bank of America Corp as its exclusive financial adviser.