Fortis demerges its diagnostics business

Ludhiana: The Board of Directors of Fortis Healthcare Limited held a meeting on Monday and approved a proposal to demerge its diagnostics business, including that housed in its majority owned subsidiary SRL Limited into another majority owned subsidiary Fortis Malar Hospitals Limited pursuant to a composite scheme of arrangement and amalgamation. The demerger shall be followed by SRL being merged with Fortis Malar as an integral part of the same composite scheme.

Appointed date for the slump sale, demerger and merger under the composite scheme is on January 1, 2017. The composite scheme of arrangement and amalgamation will be subject to the various statutory and regulatory approvals, including those from the stock exchanges, and shareholders, and creditors of the respective entities, and the sanction of the HC.

Commenting on the scheme, Malvinder Singh, executive chairman, Fortis Healthcare, said: “We believe this will unlock immense value for all the shareholders. As a result of the new synergistic groupings, both the hospitals and diagnostic businesses will benefit from greater clarity, a stronger focus and an independent growth trajectory. ” — TNS