Fortis Healthcare to buy out PE funds from diagnostics arm Agilus
Fortis Healthcare is set to acquire the stake of private equity firms in its own diagnostics arm Agilus Diagnostics (formerly SRL), according to sources in the know.
Jacob Ballas and International Finance Corporation (IFC), who along with Resurgence PE own around 34% stake in the diagnostics company, are selling their stake and exercising a put option.
The deal will peg the valuation of Agilus at around ₹5,000 crore, the people cited earlier said.
Fortis Healthcare informed in a late afternoon stock exchange filing that Jacob Ballas had expressed its intent to exercise its put option.
«The company has received a letter in respect of the exercise of put option right by NYLIM Jacob Ballas India Fund III, LLC (one of the PE investors) for 1.24 crore (12.4 million) equity shares equivalent to 15.86% equity stake held by them in Agilus for Rs 905 crore,» the Fortis statement said.
However, the other investors are expected to exercise their respective put options by early next week, according to sources. This will result in Fortis Healthcare consolidating its holding in the diagnostics company from its present stake of about 57% to about 91%. The remaining shares in Agilus are held by individual investors.
ET first reported the latest developments in its online edition on Thursday.
Fortis' majority shareholder IHH Healthcare had earlier tried to help the private equity investors get an exit by mandating Kotak Mahindra Capital to find a buyer for their stake. However, that transaction did not proceed as planned.
