Fortis Healthcare falls on board nod to demerge hospital biz into Manipal

Fortis Healthcare has dipped 10% to Rs 128, extending its Tuesday’s 4% decline on the BSE, after the company said that it has decided to demerge hospital business into Manipal Hospitals, promoted by Dr Ranjan Pai and backed by TPG.
Fortis Healthcare shareholders will receive 10.83 shares of Manipal Hospitals for every 100 shares held in the company.

Due to this deal, Manipal Hospitals will also get listed on the bourses.
The Board has also approved sale of its 20% stake in SRL to Manipal Hospitals. The remaining Fortis Healthcare will be an investment holding company with 36.6% stake in SRL, the company said in a press release.
"The move will unlock significant value for all stakeholders and will further accelerate and expand access to high quality healthcare services in India," a press statement released by promoters Malvinder Singh and Shivinder Singh said.

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