Mumbai: Fortis Healthcare Ltd, which runs a chain of hospitals in India, is looking to buy rival Wockhardt Hospitals Ltd, people familiar with the development said.
The value of the deal is pegged at around Rs970 crore, the people said on condition of anonymity.
Buyout bid: Fortis Healthcare’s Jessa Ram hospital in New Delhi. S. Burmaula / HT Photo
Habil and Nafisa Khorakiwala together own 82% stake in Wockhardt Hospitals through a holding company.
If the deal goes through, proceeds from the sale are likely to be infused into pharmaceutical firm Wockhardt Ltd, the people said. Wockhardt Ltd’s indirect holding in Wockhardt Hospitals is about 6%. In the case of a stake sale, there would therefore be a direct fund infusion. If that happens, Wockhardt Ltd’s debt to equity ratio is likely to improve from the current high level of 2.3:1 to more manageable levels. It is, however, not yet known how the deal would be structured.