India's Fortis Healthcare pulls out of amalgamation scheme with Fortis Malar, SRL

Fortis Malar Hospitals

14/06/2018 04:07

June 14 (Reuters) - Fortis Healthcare Ltd  FOHE.NS  on
Wednesday withdrew the scheme of arrangement and amalgamation
with its units Fortis Malar Hospitals Ltd  FORT.BO  and SRL Ltd,
citing a delay in its completion.
    The scheme could not be completed even after 19 months due
to reasons beyond the company's control, Fortis Healthcare said
https://www.bseindia.com/xml-data/corpfiling/AttachLive/644439d0-cf67-442b-8eb7-c357447670d4.pdf
 in a statement late on Wednesday.
    Fortis Malar runs a superspeciality hospital in Chennai
while SRL operates a chain of pathology clinics.
    Given the headwinds in the sector and less-than-optimum
performance of the diagnostics business during the period of
delay, the scheme may not result in optimum value for
shareholders, Fortis added.
    The cash-strapped hospitals operator, which has become the
target of a bidding war, earlier this month said it would look
at a new round of bids from four local and international parties
and fixed June 14 as the last day for the submission.
 urn:newsml:reuters.com:*:nL3N1T33UZ
    

 (Reporting by Vishal Sridhar in Bengaluru; Editing by Sunil
Nair)
 ((Vishal.Sridhar@thomsonreuters.com; +91 80 6749 4338; Reuters
Messaging: vishal.sridhar.thomsonreuters.com@reuters.net))